The operations of tony lobianco company

Assignment Help Accounting Basics
Reference no: EM13523875

Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $10,164 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) $94,864 $94,864
Accumulated depreciation 64,372 33,880
Fair value of equipment 42,350 52,514
Cash given up 10,164

a. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

b.Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Reference no: EM13523875

Questions Cloud

Use probability-proportional-to-size method : Use probability-proportional-to-size method
What is the average velocity over that time range : An object has an equation of motion given by x = -2t^2 + 2t - 5. What is the displacement of the particle from t = 1s to t = 3s? What is the average velocity over that time range
Find the total charge available from the battery : An alkaline D-cell has a voltage of 1.4V and is rated as 11,000mAh. Find the total charge available from the battery
How high is the bridge above the water : A rock is dropped from a bridge to the water below. It takes 2.4 s to hit the water. Find the final speed of the rock when it hits the water. How high is the bridge above the water
The operations of tony lobianco company : Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $10,164 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.
Explain potassium hydroxide and magnesium sulfate : Can someone please explain the chemistry of lidocaine synthesis to me. We made lidocaine in the lab and used 2,6 dimethylaniline, glacial acetic acid, chloracetyl chloride, sodium acetate, toluene, diethtylamine, hexane, HCL, potassium hydroxide a..
Find what is the net charge of all these electrons : water has a mass per mole of 18.0 g/mol, and each water molecule (H20) has 10 electrons. what is the net charge of all these electrons
Define the annual production of zinc sulfide : The annual production of zinc sulfide (ZnS) is 5.5e4 tons. Estimate the number of tons of SO2 produced by roasting it to extract zinc metal.
What if anything is includible in dan estate : Daisy takes out an insurance policy on her own life. Daisy designated her eldest child as the beneficiary. Daisy has come to you for advice with respect to two issues relating to this policy. First she wants to know if she died today, would the..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Prepare a schedule indicating cash collections

The company expects to sell 10% of its merchandise for cash. Of sales on account, 58% are expected to be collected in the month of the sale, 38% in the month following the sale, and the remainder in the second month following the sale. Prepare a s..

  Federal government on accrual basis of accounting

On numerous occasions, proposals have surfaced to put the federal government on the accrual basis of accounting. This is no small issue. If this basis were used, it would mean that billions in unrecorded liabilities would have to be booked, and th..

  Prepare a three-part consolidation worksheet.

Parent Corporation acquired 75 percent of Signature Company's voting stock on January 1, 201X, at underlying book value. The fair value of the noncontrolling interest was equal to 25 percent of the book value of Signature at that date. Parent uses th..

  Identify features common to gift tax formula and estate tax

Identify the features common to the gift tax formula and the estate tax formula. What is the lifetime gift tax exemption in tax year 2012? What is that exemption amount in 2013?

  Select an accounting scandal from the listing provided

Select an accounting scandal from the listing provided in class.

  The pizza company actually made 9000 pepperoni pizzas and

the pizza company makes two types of frozen pizzas pepperoni and cheese. the pizza company allocates overhead to these

  What will be the journal entry to record the formation

B. Tanner contributed $14,000 in cash plus office equipment valued at $7,000 to the TC Partnership. At the same time Chen will invest a building which is worth $90,000 to the partnership. What will be the journal entry to record the formation of t..

  Explain what is meant by the test data approach

Explain what is meant by the test data approach. What are the major difficulties with using this approach? Define parallel simulation with audit software and provide an example of how it can be used to test a client's payroll system.

  Take-home pay with the retirement contribution

What would be his weekly take-home pay with the retirement contribution deducted (married, 2 allowances, wage-bracket method, and a 2.3% state income tax on total wages)?

  Guay corp a start up company provided services that were

guay corp a start up company provided services that were acceptable to its customers and billed those customers for

  Estimating the property tax

In the year 2007, the company is estimating its property tax to be $3,600 for the year.

  Swanton company currently sells 3 products and details of

swanton company currently sells 3 products and details of revenues and costs are given below. the company is thinking

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd