Smith and Jones each own tracts of land. Because of the location of their current
operations, each would prefer to have the other's land. Smith and Jones agree
to exchange tracts. Jones pays Smith $36,000 based upon the following data.
Name Original Cost Appraised fair value
Smith $270,000 $300,000
Jones $280,000 $264,000

Instructions
(a) Prepare the journal entry to record the exchange on Smith's books, assuming
the transaction has commercial substance




(b) Prepare the journal entry to record the exchange on Smith's books, assuming
the tranaction does not have commercial substance

c) Prepare the journal entry to record the exchange on Jone's books, assuming
the transaction has commercial substance

(d) Prepare the journal entries to record the exchange on Jone's books, assuming
the transaction does not have commercial substance.

Please read the following announcement.
https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html
We won't do your homework for you, but if you post what you think is correct we can check it for you.

In exchanges with cash, you'll have a dr or cr to cash (depending on whose books you are writing the entry for), adjustments for the land, and a possible gain or loss. Commercial substance or lack thereof affects whether there is a gain or loss. Please read your text or Google it, and then try to write your entry. You will learn much more if you do it this way versus being given the answer. Thanks.

Smith and Jones each own tracts of land. Because of the location of their current
operations, each would prefer to have the other's land. Smith and Jones agree
to exchange tracts. Jones pays Smith $36,000 based upon the following data.
Name Original Cost Appraised fair value
Smith $270,000 $300,000
Jones $280,000 $264,000

Instructions
(a) Prepare the journal entry to record the exchange on Smith's books, assuming
the transaction has commercial substance




(b) Prepare the journal entry to record the exchange on Smith's books, assuming
the tranaction does not have commercial substance

c) Prepare the journal entry to record the exchange on Jone's books, assuming
the transaction has commercial substance

(d) Prepare the journal entries to record the exchange on Jone's books, assuming
the transaction does not have commercial substance.

We obviously have the same text book. Here are my answers. Could someone please review and let me know if I'm on the right track. Just a yes or no please I need to figure out what I did wrong if I'm not right. Thanks!


Smith and Jones each own tracts of land. Because of the location of their current operations, each would prefer to have the other's land. Smith and Jones agree to exchange tracts. Jones pays Smith $36,000 based upon the following data.

Smith Land Jones Land
Original Cost $270,000 $280,000
Appraised fair value at date of exchange $300,000 $264,000


Instructions
(a) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction has commercial substance.
Land – New 264,000
Cash - 36,000
Land – Old 270,000
Gain on Trade 30,000
(b) Prepare the journal entry to record the exchange on Smith's books, assuming the transaction does not have commercial substance.
Land – New 234,000
Cash - 36,000
Land – Old 270,000
(c) Prepare the journal entry to record the exchange on Jones's books, assuming the transaction has commercial substance.
Land – New 300,000
Loss on Trade 16,000
Land – Old 280,000
Cash 36,000
(d) Prepare the journal entry to record the exchange on Jones's books, assuming the transaction does not have commercial substance.
Land – New 316,000
Land – Old 280,000
Cash 36,000