Question:10-19
Novak Company exchanged equipment used in its manufacturing
operations plus $3,300 in cash for similar...
Question
10-19
Novak Company exchanged equipment used in its manufacturing
operations plus $3,300 in cash for similar...
10-19
Novak Company exchanged equipment used in its manufacturing
operations plus $3,300 in cash for similar equipment used in the
operations of Splish Company. The following information pertains to
the exchange.
Novak Co.
Splish Co.
Equipment (cost)
$30,800
$30,800
Accumulated depreciation
20,900
11,000
Fair value of equipment
13,750
17,050
Cash given up
3,300
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 0 for the amounts.)
Account Titles and Explanation
Debit
Credit
Novak Company:
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Splish Company:
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
enter an account title
enter a debit amount
enter a credit amount
Prepare the journal entries to record the exchange on the books
of both companies. Assume that the exchange has 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 0 for the amounts.)