Financial Accounting Problem: HELP!

[emjee17]

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@mods: if this thread isn't applicable in this section PLEASE just transfer it and don't close or remove. Thank you.

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Calling all Accountancy majors and CPAs!

Okay guys, I badly need your help. This topic is focusing on PPE - Property Plant and Equipment - most especially trade in (exchange), and other forms of acquisition.

If you are proficient enough in these topics please help me. Your help will definitely be appreciated.

Problem 1:
In auditing the records of Lynx Company for the year ended December 31, 2009, the following data are discovered:

1. Machine A listed at 4,500,000 was acquired at April 1, 2009 in exchange for 5,000,000 face value bonds maturing on April 1, 2019. The accountant recorded the acquisition by a debit to the machinery and a credit to bonds payable for 5,000,000. The bonds are unquoted. Straight line depreciation was recorded based on a five year life and amounted to 600,000 for 9 months.

2. Machine B listed at 3,200,000 was purchased on January 1, 2009. The entity paid 500,000 down and 250,00 per month for 12 months. The last payment was made on December 30, 2009. Straight line depreciation based on a five year life and no residual value was recorded at 700,000 for the year. Freight of 150,000 on Machine B was charged to freight in account.

3. Machine C was recorded at 3,000,000 which included the book value of 540,000 of a machine accepted as a trade in. the list price of Machine C was 2,160,000 and the trade in allowance was 150,000. This transaction took place on December 22, 2009.

4. Machine D was acquired on January 10, 2009 in exchange or a past due account receivable of 4,200,000 on which an allowance of 20% was established at the end of 2008. The fair value of the machine on January 10 was estimated at 3,300,000. The machine was recorded by a debit to machinery and a credit to accounts receivable for 4,200,000. No deprecation was recorded on Machine D because it was exchanged for 30,000 shares of the entity having a market value of 120 per share. The treasury shares account was debited for 4,200,000, the book value of Machine D.

Required: Erroneous entries, Correct entries and the Adjusting entries.


PLEASE HELP ME!!! THANK YOU!

[ain]

tabang lang kog UP for this... coz im not an accounting expert! pero much better TS that u will post this thread to CARRIER area pra naa dd2 dghan ka help out.

[epoaxlan]

nag nosebleed ko..sorry if im not of any help..bogo jud kau kog numbers..

[kitkitkit]

tabang lang tag up ni kay makalabad nis ulo problemaha..haha

[emjee17]

haha. bsag unsaon nakog answer DMD oi! grabi ni.