Project 3 Acc 550 - Debit Credit Debit Commercial substance...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Definitions Commercial substance: Recognize gain or loss. Cost of asset received = fair value of asset surrendered + cash paid No Commercial substance: No gain or loss recognized. Cost of asset received = net carrying value of asset surrende Smith Land exchanged Cost  270,000  Fair value  300,000  Jones Land exchanged Cost  280,000  Fair value  264,000  Cash paid  36,000  Smith Entries  Jones Entries 
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Debit Credit Debit Commercial substance New land 264,000 300,000 Old land 270,000 Cash 36,000 Gain or loss on sale 30,000 16,000 No Commercial substance New land 234,000 316,000 Old land 270,000 Cash 36,000 – cash received. ered + cash paid – cash received. Credit 280,000 36,000 280,000 36,000...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern