Marshall Const. Brigham Mfg. Co. No. Account Titles and Explanation Debit Credit
ID: 2474762 • Letter: M
Question
Marshall Const.
Brigham Mfg. Co.
No.
Account Titles and Explanation
Debit
Credit
1.
Marshall Construction
2.
Brigham Manufacturing
SHOW LIST OF ACCOUNTS
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
1.
Marshall Construction
2.
Brigham Manufacturing
SHOW LIST OF ACCOUNTS
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
1.
Marshall Construction
2.
Brigham Manufacturing
SHOW LIST OF ACCOUNTS
LINK TO TEXT
No.
Account Titles and Explanation
Debit
Credit
1.
Marshall Construction
2.
Brigham Manufacturing
During the current year, Marshall Construction trades an old crane that has a book value of $169,740 (original cost $264,040 less accumulated depreciation $94,300) for a new crane from Brigham Manufacturing Co. The new crane cost Brigham $311,190 to manufacture and is classified as inventory. The following information is also available.Marshall Const.
Brigham Mfg. Co.
Fair value of old crane $154,652 Fair value of new crane $377,200 Cash paid 222,548 Cash received 222,548Explanation / Answer
Marshall Construction Explanation Equipment ($154,652 + $222,548) 377200.00 New Equipment is debited Accumulated Depreciation—Equipment 94300.00 Accumulated Depreciation is debited with the total depreciation on old crane Loss on Disposal of Crane 15088* Losses are debited Equipment 264040.00 Old crane is written off the books by crediting Cash 222548.00 Cash is decreasing so it is credited *Computation of Loss: Book value of old crane $264,040 – $94,300 169740 Fair value of old crane 154652 Loss on disposal of crane 15088 Brigham Manufacturing Cash 222548.00 Cash increasing so it is debited Equipment Inventory 154652.00 Old Crane taken over Sales 377200.00 Total Value of new crane sold Cost of Goods Sold 311190.00 The cost incurred to produce the new crane Equipment Inventory 311190.00
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