leadland Ltd. exchanged equipment used in its manufacturing operations for equipment used in the operations of Sage Ltd. The Following information pertains to the exchange: Equipment (cost) Accumulated depreciation Fair value of old equipment Cash given up Headland Ltd. $84,500 46,800 42,000 1,000 Sage Ltd. $84,500 40,300 43,000 Both companies agreed that the exchange had commercial substance for both companies. Prepare the necessary journal entries to record the asset exchange on the books of both companies. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries)

leadland Ltd. exchanged equipment used in its manufacturing operations for equipment used in the operations of Sage Ltd. The Following information pertains to the exchange: Equipment (cost) Accumulated depreciation Fair value of old equipment Cash given up Headland Ltd. $84,500 46,800 42,000 1,000 Sage Ltd. $84,500 40,300 43,000 Both companies agreed that the exchange had commercial substance for both companies. Prepare the necessary journal entries to record the asset exchange on the books of both companies. (Credit account titles are automatically indented when the 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. List all debit entries before credit entries)

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1AP

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