Question

Monet Company decides to exchange some equipment for new equipment. The details are shown below: Equipment...

Monet Company decides to exchange some equipment for new equipment. The details are shown below:

Equipment (old)   cost   $6,480  

Acc. Depreciation             3,570

Instructions:

Record the exchange on the books of Monet assuming the transaction lacks commercial substance, the fair value of the old equipment is $2,600 and Monet had to pay $200 cash

Date

Debit

Credit

Record the exchange on the books of Monet assuming the transaction lacks commercial substance, the fair value of the old equipment is $3,390 and Monet had to pay $110 cash.

Date

Debit

Credit
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