Problempittsburgh company exchanged a used machine for a, Ask an Expert

Accounting

Problem

Pittsburgh Company exchanged a used machine for a used machine that was held by St. Louis Corporation. Pittsburgh's machine had a fair value of $9,000, an original cost of $180,000, and related accumulated amortization of $175,000. St. Louis' machine had a market value of $11,000, an original cost of $170,000, and related accumulated amortization of $160,000.

Of the two measures of fair value noted above, the fair value of Pittsburgh's machine is determined to be more reliable.

As part of the arrangement between the two parties, Pittsburgh Company also paid $3,000 in cash to St. Louis Corporation. Pittsburgh Company's accountant, in consultation with the Company's auditor, has determined that this non-monetary exchange transaction lacks commercial substance.

Required (show any calculations you make):

Prepare and present the journal entry or entries to record the exchange. You need present only those entries that relate to Pittsburgh Company's accounting.

Assume the same facts as above, but instead assume that it has been decided that the transaction has commercial substance. Prepare and present the journal entry or entries that Pittsburgh Company would make to record the exchange.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92795488

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - restricted stockon december 31 2014 ying

Question - Restricted Stock On December 31, 2014, Ying Corporation granted 5,000 shares of its $1 par value common stock to certain of its key employees. The shares are restricted until 2 years of employment is completed ...

Assignment - fifth cousin media caseinstructions download

Assignment - FIFTH COUSIN MEDIA CASE Instructions: Download ACC3313 FCM Template.xls from TRACS-Resourses-Part1. 1. Record the journal entries for all items (#1 - #28) in the GJ (General Journal) for Fifth Cousin Media L ...

Question suppose that france and germany both have 100

Question: Suppose that France and Germany both have 100 units each of capital and labor, and that they share the same CRS technology with which they produce wine and cheese. However, tastes differ in the two countries: c ...

Question - on september 1 kennedy company loaned 120000 at

Question - On September 1, Kennedy Company loaned $120,000, at 10% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are onl ...

Question -waterway inc had net sales in 2017 of 1492600 at

Question - Waterway, Inc. had net sales in 2017 of $1,492,600. At December 31, 2017, before adjusting entries, the balances in selected accounts were Accounts Receivable $232,200 debit, and Allowance for Doubtful Account ...

Question using the readings about the differences between

Question: Using the readings about the differences between managers and leaders, and grounded in strategic planning, how can one take a leadership role in making yours a plan that works? The response must be typed, singl ...

Question the availability of funds effects the capital

Question: The availability of funds effects the capital budgeting decisions. The amount of funds available for capital expenditures will be either limited or unlimited. Funds would be considered unlimited when a firm is ...

Question - the ap clerk of a company writes the checks for

Question - The A/P clerk of a company writes the checks for vendors, and the controller signs the checks. The A/P clerk has devised a plan to give herself a raise. She creates a new vendor for her friend's business and c ...

Question - make a statement of comprehensive income from

Question - Make a statement of comprehensive income from the following data? Sales revenue $40,000,000 General and administrative expenses 8,200,000 Deferred revenue 100,000 Interest expense 65,000 Selling expenses 1,800 ...

Question - why is net income before tax the most common

Question - Why is net income before tax the most common base used to determine the preliminary judgment about materiality? In what circumstances might the auditor use a different base?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert