Problem 10-9 Asset A Asset B Account Titles and Explanation Debit Credit Hyde, I
ID: 2471981 • Letter: P
Question
Problem 10-9
Asset A
Asset B
Account Titles and Explanation
Debit
Credit
Hyde, Inc.’s Books
Wiggins, Inc.’s Books
LINK TO TEXT
Account Titles and Explanation
Debit
Credit
Hyde, Inc.’s Books
Wiggins, Inc.’s Books
Problem 10-9
On August 1, Hyde, Inc. exchanged productive assets with Wiggins, Inc. Hyde’s asset is referred to below as “Asset A,” and Wiggins’ is referred to as “Asset B.” The following facts pertain to these assets.Asset A
Asset B
Original cost $148,416 $170,060 Accumulated depreciation (to date of exchange) 61,840 72,662 Fair value at date of exchange 92,760 115,950 Cash paid by Hyde, Inc. 23,190 Cash received by Wiggins, Inc. 23,190Explanation / Answer
Hyde, Inc.'s Books Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Machinery B Dr. 115950 Accumulated Dep. - Mach. A Dr. 61840 To Machinery A 148416 To Cash 23190 To Gain on Disposal of Mach A 6184 (Record the exchange of Mach A with Mach B) Gain on Disposal of Mach A = 115950 - (148416-61840) - 23190 = $6184 Wiggins, Inc.'s Books Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1 Machinery A Dr. 92760 Cash Dr. 23190 Accumulated Dep. - Mach B Dr. 72662 To Machinery B 170060 To Gain on Disposal of Mach B 18552 (Record the exchange of Mach B with Mach A) Gain on Disposal of Mach b = 92760 + 21390 - (170060 - 72662) = $18552
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