During the current year, Ayayai Construction Ltd. traded an old crane that had a book value of $127,800 (original cost $198,800 less accumulated depreciation $71,000) for a new crane from Pina Manufacturing Inc. The new crane cost Pina $234,300 to manufacture and is classified as inventory. The following information is also available. Fair value of old crane Fair value of new crane Cash paid Cash received Ayayai Const. $116,440 167,560 Pina Mfg. Inc. $284,000 167,560 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Ayayai Construction and (2) Pina Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent

During the current year, Ayayai Construction Ltd. traded an old crane that had a book value of $127,800 (original cost $198,800 less accumulated depreciation $71,000) for a new crane from Pina Manufacturing Inc. The new crane cost Pina $234,300 to manufacture and is classified as inventory. The following information is also available. Fair value of old crane Fair value of new crane Cash paid Cash received Ayayai Const. $116,440 167,560 Pina Mfg. Inc. $284,000 167,560 Assuming that this exchange is considered to have commercial substance, prepare the journal entries on the books of (1) Ayayai Construction and (2) Pina Manufacturing. (Credit account titles are automatically indented when amount is entered. Do not indent

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...

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