Problem 1: (9 marks) Version 6 ...

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Problem 1: (9 marks)			Version 6


Aylmer Inc. exchanged equipment used in its business for similar equipment used by Belmont Inc. Belmont paid Aylmer $6,100 cash as part of the deal. The following information relates to the assets of the two companies at the time of the exchange.
		Aylmer Inc.	Belmont Inc.
	Equipment (cost)	$ 62,300	$ 70,900
	Accumulated Depreciation	$ 45,600	$ 58,950
	Fair value of the equipment	$ 23,200	$ 19,500

Instructions:
a) Prepare the journal entry for Aylmer Inc. To record the transaction if the exchange is deemed to have commercial substance.

Date	Description	Dr	Cr







b) Prepare the journal entry for Belmont Inc. to record the transaction if the exchange is deemed to have NO commercial substance.
Date	Description	Dr	Cr

Other questions asked by students