Books to record the settlement of the receivable

Reference no: EM13160312

Mann, Inc., which owes Doran Co. $600,000 in notes payable with accrued interest of $54,000, is in financial difficulty. To settle the debt, Doran agrees to accept from Mann equipment with a fair value of $570,000, an original cost of $840,000, and accumulated depreciation of $195,000.

Instructions:

(a) Compute the gain or loss to Mann on the settlement of the debt.(b) Compute the gain or loss to Mann on the transfer of the equipment.

(d) Prepare the journal entry on Doran's books to record the settlement of the receivable.

Reference no: EM13160312

Questions Cloud

Prepare cost of production report using fifo process costing : Lilliputian Inc. produces dog food. All direct material is entered at the beginning of the process. Some shrinkage occurs during the production process. Prepare an October 2010 cost of production report for Lilliputian Inc. using FIFO process costi..

How does the metabolic rate is measurement differ : How does the metabolic rate's measurement differ in ectotherms andendotherms?

Dysfunction of brain neuroreceptors : Identify and describe two mental disorders that have been directly linked to the dysfunction of the brain's neuroreceptors

Which entries would company make to record change : The new method. Williams Company experiences a 40% tax burden. Which one of the following entries would the company make to record this change?

Books to record the settlement of the receivable : (c) Prepare the journal entry on Mann's books to record the settlement of his debt. (d) Prepare the journal entry on Doran's books to record the settlement of the receivable.

Calculate the molarity of the naoh solution : when 0.198 g of KHP is tritated with NaOH it requires 27.80 mL of NaOH to reach the endpoint of the reaction. Calculate the molarity of the NaOH solution.

How social psychology differs from other disciplines : Discuss how social psychology differs from other disciplines, such as clinical psychology, general psychology, and sociology in at least 300 words.

Reduce the residual value remaining furniture : Purchased office furniture on credit from Goodyear supply for defective office furniture received on may 10 and returned for credit. The return of defective furniture will reduce the residual value remaining furniture to $3000.

Calculate the heat evolved : The heat of formation of Al2O3(s) is -1669 kJ/mol. Calculate the heat evolved when .267 g of Al burns in oxygen.

User Account

All Pages