Grouper Company exchanged equipment used in its manufacturing operations plus $4,080 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Grouper Co. $38,080 25,840 Monty Company: 17,000 4,080 Account Titles and Explanation Grouper Company: Monty Co. $38,080 13,600 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 21,080 Debit Credit

Grouper Company exchanged equipment used in its manufacturing operations plus $4,080 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Grouper Co. $38,080 25,840 Monty Company: 17,000 4,080 Account Titles and Explanation Grouper Company: Monty Co. $38,080 13,600 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 21,080 Debit Credit

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 4AP

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Smile company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: Smile FrownEquipment 2, 400, 000 2, 200, 000Accumulated Depreciation 2, 000, 000 1, 750, 000Fair value of equipment 500, 000 500, 000 Required: Journal entries on the books of smile and frown
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