On September 3, 2021, the Robers Company exchanged equipment
with Phifer Corporation. The facts of the exchange are as
follows:
| Robers’ Asset | Phifer’s Asset | |||||
| Original cost | $ | 170,000 | $ | 190,000 | ||
| Accumulated depreciation | 95,000 | 103,000 | ||||
| Fair value | 90,000 | 75,000 | ||||
To equalize the exchange, Phifer paid Robers $15,000 in cash.
What I need solved:
Please help me record the exchange for both Robers and Phifer. The
exchange has commercial substance for both companies. (If
no entry is required for a transaction/event, select "No journal
entry required" in the first account field.) Thank
you!
In books of Rober's company :
| DATE | ACCOUNT TITLE | DEBIT | CREDIT |
| September 3 ,2021 | Cash | 15000 | |
| Equipment (New) | 75000 | ||
| Accumulated depreciation (old) | 95000 | ||
| Equipment (old) | 170000 | ||
| Gain on exchange of assets | 15000 |
B)In Books of Phifer company :
| DATE | ACCOUNT TITLE | DEBIT | CREDIT |
| September 3,2021 | Equipment (New) | 90000 | |
| Accumulated depreciation (old) | 103000 | ||
| Loss on exchange of asset | 12000 | ||
| Equipment (old) | 190000 | ||
| cash | 15000 |
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