Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $3,000 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.



Carlos Arruza Co. Tony LoBianco Co.



Equipment (cost) $28,000 $28,000



Accumulated depreciation 19,000 10,000



Fair value of equipment 12,500 15,500



Cash given up 3,000



a) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance.



b) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance

Answers

Answer 1

The entry for Carlos Arruza Co. assuming the exchange lacks commercial substance is Debit: Accumulated Depreciation, Equipment (fair value), Cash & Credit: Equipment (cost). The entry for Tony LoBianco Co. assuming the exchange has commercial substance is Debit: Accumulated Depreciation, Equipment (cost) &Credit: Gain on Exchange, Cash & Equipment (fair value).

a) Assuming the exchange lacks commercial substance:

Carlos Arruza Co. journal entries:
1. Debit: Accumulated Depreciation $19,000
2. Debit: Equipment  (fair value) $12,500
3. Debit: Cash $3,000
4. Credit: Equipment (cost) $28,000

Tony LoBianco Co. journal entries:
1. Debit: Accumulated Depreciation  $10,000
2. Debit: Equipment (cost) $15,500
3. Credit: Cash $3,000
4. Credit: Equipment (fair value) $28,000

b) Assuming the exchange has commercial substance:

Carlos Arruza Co. journal entries:
1. Debit: Accumulated Depreciation  $19,000
2. Debit: Equipment (fair value) $15,500
3. Debit: Loss on Exchange $1,500
4. Debit: Cash $3,000
5. Credit: Equipment (cost) $28,000

Tony LoBianco Co. journal entries:
1. Debit: Accumulated Depreciation $10,000
2. Debit: Equipment (cost) $12,500
3. Credit: Gain on Exchange $1,500
4. Credit: Cash $3,000
5. Credit: Equipment (fair value) $28,000

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Related Questions

Budgeted Cash Collections, Budgeted Cash Payments
Historically, Ragman Company has had no significant bad debt experience with its customers. Cash sales have accounted for 20 percent of total sales, and payments for credit sales have been received as follows:
40 percent of credit sales in the month of the sale
35 percent of credit sales in the first subsequent month
20 percent of credit sales in the second subsequent month
5 percent of credit sales in the third subsequent month
The forecast for both cash and credit sales is as follows.
January $185,000
February 185,000
March 193,000
April 195,000
May 220,000
Required:
1. What is the forecasted cash inflow for Ragman Company for May?
$fill in the blank 1
2. Due to deteriorating economic conditions, Ragman Company has now decided that its cash forecast should include a bad debt adjustment of 2 percent of credit sales, beginning with sales for the month of April. Because of this policy change, what will happen to the total expected cash inflow related to sales made in April? (CMA adapted)
Cash will

Answers

1. The forecasted cash inflow for Ragman Company for May is $38,500.

2. Due to the bad debt adjustment of 2 percent of credit sales, the total expected cash inflow related to sales made in April will decrease.

1. To calculate the forecasted cash inflow for May, we need to consider the payment patterns for credit sales. According to the given information, the payment percentages for credit sales are as follows:

- 40% in the month of the sale

- 35% in the first subsequent month

- 20% in the second subsequent month

- 5% in the third subsequent month

Based on the forecasted sales for May ($220,000), we can calculate the cash inflow as follows:

May sales:

- Cash sales: 20% of $220,000 = $44,000

- Credit sales from February (first subsequent month): 35% of $185,000 = $64,750

- Credit sales from March (second subsequent month): 20% of $193,000 = $38,600

- Credit sales from April (third subsequent month): 5% of $195,000 = $9,750

Total cash inflow for May:

$44,000 + $64,750 + $38,600 + $9,750 = $157,100

Therefore, the forecasted cash inflow for Ragman Company for May is $157,100.

2. Due to the bad debt adjustment of 2 percent of credit sales, the total expected cash inflow related to sales made in April will decrease. The adjustment accounts for potential bad debts that the company expects to incur. As a result, the amount of cash inflow from credit sales made in April will be reduced by 2 percent.

1. The forecasted cash inflow for Ragman Company for May is $157,100.

2. Due to the bad debt adjustment, the total expected cash inflow related to sales made in April will decrease.

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The responsibilities of a​ ________ include collaborating with​ cross-functional teams on projects and analyzing organizational data.
A. systems analyst
B. consultant
C. business intelligence analyst
D. server administrator
E. technical sales

Answers

The responsibilities of a business intelligence analyst include collaborating with cross-functional teams on projects and analyzing organizational data.

This role involves gathering data from various sources, transforming it into meaningful insights, and presenting findings to stakeholders. Business intelligence analysts use tools and techniques such as data mining, data visualization, and statistical analysis to identify patterns, trends, and opportunities that can help the organization make informed decisions. They work closely with departments such as finance, marketing, and operations to ensure that data is used effectively to achieve business goals. In addition to technical skills, business intelligence analysts must have strong communication and problem-solving abilities to effectively translate complex data into actionable recommendations.

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manoli reed retired at age 65. soon he began to receive monthly checks from the federal government. what kind of tax had mr. reed paid that entitled him to this money?

Answers

Mr. Reed was entitled to receive money since he had paid the social security tax.

How much do social security fees cost?

Compulsory payments made to the general government known as social today ’s financial give recipients the right to receive a probable social benefit in the future.

What's the purpose of the Social Security fee?

In most circumstances, you are required to pay social security and Medicare taxes if you are an employee in the United States. Your eligibility for benefits under the American social security system is influenced by the you pay in taxes. Each time you receive a paycheck, your company deducts these taxes.

According to Section 6 of the Value Added Tax Act No. 14 of 2002, the Levy shall be levied at a rate of 2.5% upon that worth of the article determined for the purposes of the Value Added Tax.

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4. If your checking account's balance is
$3,678.89 and you withdraw $1,514, what
is the remaining balance?
A $2,164.89
B $5,192.89
C$2,614.89
D $3,678.89
(Step by step ) please

Answers

A. $2164.89
Basically just subtract, 3,678.89-1514 = 2,164.89

the manischewitz company broadened its marketing efforts to capture more of the mainstream market following , which identified favorable demand trends for ethnic foods. group of answer choices a budget analysis an opportunity analysis a promotional push strategy a promotional pull strategy a positioning strategy

Answers

The Manischewitz Company broadened its marketing efforts to capture more of the mainstream market following an opportunity analysis (B), which identified favorable demand trends for ethnic foods.

An opportunity analysis is a type of marketing strategy that examines the current market trends and determines the potential for growth or expansion. By identifying favorable demand trends for ethnic foods, the Manischewitz Company was able to broaden its marketing efforts and capture more of the mainstream market. This type of analysis is crucial for companies looking to stay competitive and expand their customer base.

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which task is carried out by book keeping

Answers

Answer:

Explanation:

Invoices and unpaid bills are one of the most important responsibilities of the bookkeeper. A bookkeeper who fails to keep an account of the money flowing into and out of the business, for instance, makes it all too easy to spend money that isn't there.

in the open item system, payments are applied to the outstanding balance rather than against particular invoices. group of answer choices true/false

Answers

True. In an open item system, payments are typically applied to the outstanding balance rather than against particular invoices.

This means that when a payment is made towards an open item, it reduces the total amount that needs to be paid across all open items, rather than just one specific invoice. This approach allows for more flexibility in managing open items and ensures that payments are applied consistently across all outstanding balances. It also simplifies the billing process, as customers do not need to keep track of multiple invoices and payment amounts.

However, it's important to note that the specific application of payments in an open item system may vary depending on the particular billing and payment systems being used. Some systems may apply payments to individual invoices first, and then to any remaining balances. It's always a good idea to consult with the relevant parties to determine how payments are handled in an open item system.  

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The share in the company's profit is called_________.​

Answers

Answer:

profit sharing

Explanation:

From Investopia they define profit sharing as

"A plan gives employees a share in their company's profits based on its quarterly or annual earnings."

You are planning your retirement and you come to the conclusion that you need to have saved $1.54 million in 29 years. You can invest into a superannuation that guarantees you a 5.3% p.a. return compounded monthly. To achieve your retirement saving goal, how much is the monthly contribution if it is made at the beginning of each month?

Answers

To achieve a retirement savings goal of $1.54 million in 29 years with a 5.3% p.a. return compounded monthly, the correct monthly contribution, made at the beginning of each month, is approximately $836.19.

Let's calculate the correct monthly contribution. Using the formula for future value of an ordinary annuity:

FV = P * [(1 + r)ⁿ⁻¹] / r

Where:

FV = Future value (target savings goal) = $1.54 million

r = Monthly interest rate = 5.3% / 12 = 0.4416667% (converted to decimal)

n = Number of compounding periods = 29 years * 12 months = 348 months

Now, let's calculate the monthly contribution (P):

$1.54 million = P * [(1 + 0.004416667) ³⁴⁸⁻¹] / 0.004416667

Solving this equation:

P = $1.54 million * 0.004416667 / [(1 + 0.004416667) ³⁴⁸⁻¹]

P ≈ $836.19

Therefore, to achieve your retirement savings goal of $1.54 million in 29 years with a 5.3% p.a. return compounded monthly, you would need to contribute approximately $836.19 at the beginning of each month.

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Faulty tools must be recorded first, ________ them and report it to the authorize personnel. 

A. Condemned

B. Thrown

C. Marked

D. Used

Answers

Answer:

condemned or thrown I think

Answer ASAP
An entrepreneur wants to start a bakery. He wants to make a sales forecast for his first six months in business, so he obtains the sales records for all the successful bakeries in his state and uses the monthly average for his forecast. What mistake is he making in this process? A. It is impossible to make an accurate sales forecast for a new business, and attempting to do so will only set him up for failure and disappointment. B. He should not use data from bakeries in his own state, as it is unlikely that they will report accurate estimates to their potential competitor C. He should be looking at sales records for all the successful bakeries in the country, not just in his state. D. It is not likely that he will be able to match the sales volume of successful, established bakeries in his first six months.​

Answers

The Mistake is he making in this process it is not likely that he will be able to match the sales volume of successful, established bakeries in his first six months.​ The correct option is D.

What is the importance of sales forecasting?

A precise sales forecast enables businesses to efficiently allocate resources for future growth while also managing cash flow. Forecasting sales help create benchmarks for future trends and allow executives to make early course corrections. Revenue executives can optimize for more wins by aligning sales quotas with revenue goals.

Make a list of the products and services you offer. Estimate how much of each you anticipate selling. Define the unit price or monetary worth of each sold good or service. Divide the number of units sold by the price. Determine the cost of producing and selling each commodity or service.

Thus, the ideal selection is option D.

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Answer:

option d

Explanation:

it is not likely that he will be able to match the sales volume of successful, established bakeries in his first six months

Learning is Fun company had current assets amounting to Php 100,000. Noncurrent assets for the year totaled Php 76,000. How much is the company's total assets?

Answers

Current assets = 100,000
Non current assets = 76,000

Total assets = current + non current
Total assets = 100,000 + 76,000
Total assets = 176,000

The company's total assets are Php 176,000

How to calculate total assets?

By adding current and non-current assets, we will get the company's total assets.

Given:

Current assets = 100,000

Non current assets = 76,000

By adding current and non-current assets:

Total assets = current + non current

Total assets = 100,000 + 76,000

Total assets = 176,000

Taking liabilities into account makes for the most accurate calculation of total assets. To determine total assets, you subtract the value of liabilities from the value of assets.

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“The needs of a society conflict with the goals of the financial services industry’s desire to make a profit.” Do you agree or disagree?

Answers

Answer:

I do not agree that "the needs of a society conflict with the goals of the financial services industry's desire to make a profit", but on the contrary, I consider that the economic objectives of the financial system contribute to the well-being of the individuals that make up society, with which they satisfy the needs of this in an indirect way.

I believe this because the financial system, through its will to profit, creates jobs and economic opportunities for individuals, who would otherwise be forced to meet their needs without the help of a system designed to profit as a result of work done (such as communism).

Although it may seem straightforward, the management process is complex. The management functions include:

Answers

Although it may seem straightforward, the management process is complex. The management functions include: applying and distributing organizational resources effectively.

What are management functions?

This is a term that is used to refer to the work that is done by the people that are at the management level in an organization.

Most of these functions have to do with the fact that the resources in the business are well distributed.

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If investment spending increases by $100 billion and real gdp increases by $500 billion, the expenditures multiplier is?

Answers

The expenditures multiplier is 5 if real GDP increases by $500 billion and investment spending rises by $100 billion.

The expenditure multiplier postulates that spending is both significant and influential in determining the equilibrium level of GDP. More specifically, it indicates that a change in spending results in a GDP change that is not proportional.

The expenditure multiplier is needed because when one person spends, they generate money for someone else, who then generates more spending and income, and so on.

As a result, the overall effect on GDP is greater than the initial spending increase. The section on The Expenditure-Output Model contains more information about the expenditures multiplier process in detail, but the idea is significant enough to be explained here. The multiplier happens whenever there is an independent rise in spending, which is critical for assessing the effectiveness of fiscal policy.

Expenditure Multiplier = Change in Real GDP / Change in Investment Expenditure

                                      = 500 / 100 = 5

Hence , Expenditure multiplier will be 5.

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What is the volume of a box that is 3 m long, 0.5 m high, and 2 m wide?

Answers

the answer is three! you simply multiply all three together!

the various departments of an organization (e.g., human resources, accounting, public relations) all represent

Answers

The various departments of an organization, such as human resources, accounting, and public relations, all represent different functional areas or disciplines within the organization.

Human resources department focuses on managing the organization's workforce, including hiring, training, performance management, and employee relations. It plays a crucial role in ensuring the organization has the right talent and maintaining a positive work environment.

Accounting department is responsible for managing the organization's financial resources, including financial reporting, budgeting, and ensuring compliance with financial regulations. It provides financial information that supports decision-making and helps monitor the organization's financial health.

Public relations department is involved in managing the organization's communication and relationships with the public, media, stakeholders, and customers. It aims to build and maintain a positive image of the organization, handle crisis communications, and support marketing and branding efforts.

Overall, these departments represent different functional areas that collaborate and support each other to achieve the organization's goals and objectives. They bring unique expertise and skills to their respective areas, contributing to the organization's overall success and effectiveness.

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Why is a U.S. savings bond considered a safe form of saving?

Answers

Explanation:

U.S. savings bonds are considered one of the safest investments because they are backed by the full faith and credit of the U.S. government. ... They are sold at face value, so you'll pay $50 for a $50 bond. The bond is worth its full value upon redemption. The interest is issued electronically to your designated account.

Define leadership behaviors (in your own words) and note which behaviors are beneficial at specific organizational activities (example: project planning, leading coworkers, etc…). Please note at least five organizational activities and be specific when responding.

Answers

Leadership behaviors refer to the actions, traits, and skills demonstrated by a leader to influence, inspire, and guide their team towards achieving a common goal. Different leadership behaviors are beneficial for specific organizational activities.

Explanation: Effective leadership behaviors can vary depending on the specific organizational activity. For example, during project planning, leaders should demonstrate behaviors such as setting clear goals, establishing timelines, and delegating tasks. When leading coworkers, effective leadership behaviors may include active listening, providing feedback, and promoting a positive work culture. Other specific organizational activities that may benefit from certain leadership behaviors include conflict resolution, decision-making, and performance management.

Therefore, leadership behaviors are critical for the success of any organization, and leaders must be able to adapt their behaviors to meet the needs of specific organizational activities. By understanding which behaviors are most effective for each activity, leaders can maximize their effectiveness and promote a positive work environment.

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The entity that promises to make the interest and maturity payments for a bond issue is called the:.

Answers

The entity that pledges to make the interest and maturity payment for bond issues is called the issuer.

Who is a Bond issuer?

A bond is a completely fixed instrument that reflects an investor's debt to a borrower.

Bonds terms and conditions include the end date when the capital of the loan is scheduled to be paid to the bond owner with a fixed or variable interest payment.

Bond Issuers are businesses or entities that generate and take loans from people who buy bonds in exchange for periodic interest and repayment of the principal amount when the bonds mature.

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Becoming more efficient and minimizing start-up costs are ways to
A) Increasing net profit
B) Decreasing gross profit
C) Increasing gross profit
D) Decreasing net profit

Answers

The correct answer is d

Becoming more efficient and minimizing start-up costs are ways to Increase net profit. Thus the correct option is A.

What are startup costs?

The costs involved in establishing a new firm are known as startup costs. Equipment, registration fees, insurance, and taxes are startup expenses because they are needed when a business is first started up.

The start-up costs of a business should be low as the initial level there is high risk associated with the business. To reduce the startup costs it is important to do proper research and fix a budget for particular things.

After planning and things get implemented it is important to track every operation to minimize the cost and control the functions timely to help to perform efficiently with the resources.

A business can increase its profit margins without compromising quality, sales price, or product sales by improving the supply chain, manufacturing companies, staff, and facilities used in business.

Therefore, option A is appropriate.

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self disclosure is most likely to occur

Answers

Answer:

question?

Explanation:

difference between arbitration and mediation

Answers

Answer:

The main difference between arbitration and mediation is that in arbitration the arbitrator hears evidence and makes a decision. In mediation, the process is a negotiation with the assistance of a neutral third party. The parties do not reach a resolution unless all sides agree.

Explanation:

Answer:

The main difference between arbitration and mediation is that in arbitration the arbitrator hears evidence and makes a decision. ... In mediation, the process is a negotiation with the assistance of a neutral third party. The parties do not reach a resolution unless all sides agree.

Explanation:

best hashtags use for dancing


I am not that supported soo plss help me find the best hashtags ​

Answers

Answer:

i'm assuming you're referring to hashtags to be posted on social media.

#dancer

#dancing

#dance

#music

#songs

#contemporary

#hip-hop

#classical

Explanation:

If implemented, the southern alliance's proposed "subtreasury system" would have eased the farm debt crisis by?

Answers

The sub-treasury plan, the federal government would hold crops in public warehouses and issue loans on their value until they could be profitably sold.

Why did Farmers face an increasing debt load in the late 1800s?

They were caught between increased costs and falling prices.

Why did the Grange movement focus on reducing prices that railroads and grain elevators charged?

Farmers relied on railroads and grain elevators but were forced to pay higher than usual rates.

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2. Making choices is necessary in all economic systems because:
A. there are so many products that we cannot use them all at once
B. the government has so much money that it does not know what to do with it
C. there are so many resources compared to people’s needs that we have to choose which ones not to use
D. there are so many wants compared to scarce resources that we have to decide what to produce

Answers

Explanation:

it is d because we don't have enough resources to sustain forever so we have to figure out how to make them last.


Which of the following is not an example of professional behavior
?

Answers

What are the answers?

whose responsibility is it to maintain the safety bubble when on the trailer yard?

Answers

The responsibility of maintaining safety on a trailer yard is shared among all parties involved. This includes the truck drivers, trailer yard personnel, and anyone else who may be present on the yard.

Truck drivers should ensure that they are properly trained and equipped to handle their vehicles, including performing pre-trip inspections to ensure their equipment is in good working order. Additionally, drivers should be aware of their surroundings and take extra caution when maneuvering their vehicles on the yard. Trailer yard personnel are responsible for maintaining a safe and organized yard. This includes ensuring that trailers are properly stored and secured, and that there are no hazards present on the yard. It is also important for yard personnel to be aware of their surroundings and to communicate any safety concerns to truck drivers. Ultimately, the responsibility for maintaining a safe trailer yard falls on everyone involved. By working together and being mindful of safety, we can help to ensure that everyone stays safe while on the yard.

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How do alternatives relate to thoughtful decisions

Answers

Answer:they help give better chances of making a good decision the longer the list of alternatives are.

Henry, a trainer at MyChem Inc., schedules training on handling hazardous chemicals for a group of newly hired employees. The training complies with OSHA regulations and is given to all employees upon hire along with periodic refreshers. The type of training described in this scenario is _____.

Answers

Answer:

Hazard Communication Standard  (HCS) training program

Explanation:

The type of training described in this scenario is known as the  Hazard Communication Standard  (HCS) training program. This is a employee training program designed with the goal of explaining and reinforcing the written information regarding hazard labels and material safety data sheets, as well as how to behave around hazardous material and to apply this information to their workplace.

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olive has very green eyes, while her husband skye has very blue eyes. interestingly, their son's eyes appear to be a mix of both green and blue. the eye color of their child best exemplifies the concept of what kind of microscope produces the best resolution of all light microscopes but its resolution power is only a fraction of electron microscopes? Use the picture to answer the question.imageHurricanes build over warm ocean water. What else has to be present for a hurricane to form? A. a swell under the water that causes a large wave B. low pressure that pulls in warm surface air C. a cold front that cools the surface of the ocean D. an increase in salinity of the ocean water Banks offer various FX services to MultinationalEnterprises. Briefly explain the characteristics of such banksdealing with FX businesses ead this excerpt from The Miracle Worker.ANAGNOS: Possible. I should warn you, she is much given to tantrums.ANNIE: Means something is inside. Well, so am I, if I believe all I hear. Maybe you should warn them.ANAGNOS [FROWNS]: Annie. I wrote them no word of your history. You will find yourself among strangers now, who know nothing of it.ANNIE: Well, well keep them in a state of blessed ignorance.Which statement best describes Annies attitude toward her upcoming assignment in this excerpt?She is discouraged and concerned about her ability to teach.She is lighthearted and joking about her own shortcomings.She is nervous and reluctant to leave Anagnos.She is studious and eager to share her knowledge. You're on a trip through soutrAmerica and you don't haveinternet access.Using 4-6 complete Spanishsentences, write vour father aletter about the ditterentammas vou see onvour triran anvwin themMake surevou include thetollowing:hovere'ya father and ask him Tell him about the animals infive sentences and trv to includeone irregular vero 1n each What is the job of a lobbyist?A. enforce lawsB. make lawsC. get lawmakers to introduce or support new lawsD. get members elected to office A 3-gallon bucket of paint costs $103.68. What is the price per cup? Jonathans Golf Club Company (JGCC) is in the process of analyzing its selling costs. For the prior 4 quarters, it had the following selling costs and golf clubs sold: Selling Golf Clubs Costs ($) Sold (units) Quarter 1 $1,000,000 50,000 Quarter 2 1,300,000 80,000 Quarter 3 1,700,000 120,000 Quarter 4 1,100,000 60,000 JGCC uses the high-low method to determine what its selling costs will be in the next quarter, when it anticipates selling 100,000 units. That cost will be: A. $2,000,000 B. $1,500,000 C. $1,416,000 D. $1,645.000 E. $1,588,000 Sodium chloride is a soluble salt that can be made by mixing sodium hydroxide with an acid. Sodium metal cannot be used because it is too... what? Doug threw some printed pages into the air and grabbed 2 as they fell.Is this a random sample of the printed pages?Answer as Yes or No What is 4*f(6)-6*g(5) What would the graph of an equation look like on a number line?(use an example) Pls help me with this fast thanks You are playing darts with your friends. You get 10 points for bullseye-yellow, 5 for red, 3 for purple, and one for black. You throw 2 darts. Make a list to show all the possible scores you could get. The volcano Izalco in El Salvador is a small, steep-sided volcano. What conclusions can be drawn about the characteristics of the lava that formed this volcano? Solve this problem 48-2(8+2) A short, thick beak is best for birds whose food consists of thick seeds Question 4 options: True False. when an investor is diversified only risk matters. multiple choice question. systematic unnatural diversifiable unsystematic How is uranium-235 enriched? Uranium-235 has to be enriched before it can be turned into fuel rods. This enrichment is achieved by and.