User Account

All Pages

How do prepare the relevant journal entries

Assignment Help Accounting Basics
Reference no: EM132627908

Exchange of assets WITH CASH INVOLVED

Elias Company and Emma Company are fuel oil distributors. To facilitate the delivery of oil to customers, Elias and Emma exchanged ownership of 1,000 barrels of oil without physically moving the oil. Elias paid Emma P1,500,000 to compensate for a difference in the grade of oil. On the date of the exchange, cost and fair value of oil were:

                          Elias Company              Emma Company

Cost                    5,000,000                    6,000,000

Fair value                  7,000,000                  8,500,000

Question 1: Prepare the relevant journal entries if transaction is

a) with commercial substance; and

b) without commercial substance.

Reference no: EM132627908

Questions Cloud

Prepare journal entries to record the above transactions : Prepare journal entries (in general journal form) to record the above transactions. Use a 360-day year in making the interest calculations
How do prepare adjusting entries for december : Edison Realty for the year 2019 have been recorded in the accounting system. This problem requires you to prepare adjusting entries for December 2019.
How much is your salary : Imagine that you are an active partner in a firm and there is no mention about your salary in a partnership deed. How much is your salary
What is a summary of the health care administrator role : What is a summary of the health care administrator's role in regard to political, legal, and ethical issues related to an issue such as a data breach, a HIPAA o
How do prepare the relevant journal entries : Elias Company and Emma Company are fuel oil, Prepare the relevant journal entries if transaction is with commercial substance; and without commercial substance.
Connections between liability of professionals : What are the major connections between liability of professionals, insurance policy coverage, and settlement of claims due to health care liability issues?
What are the rights that the concept of property involves : What are the rights that the concept of property involves by definition and what are the features of the capitalist form of property?
Describe how the information in this table could be used : Table 2-2 Adult Learning Characteristics and Related Applications. Compare and contrast the different learning styles on page 31 in your textbook and describe.
Find claim for cancellation penalties : On 1 March 2020 she entered into a written, fixed-term lease agreement with Andile Seshoka in terms of which Seshoka leased to her a property situated

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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