12:34 Brief Exercise 7-18 (Algo) Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $24,000 and $15,600 (original cost of $43,000 less accumulated depreciation of $27,400), respectively. To equalize market values of the exchanged assets, China Inn paid $7,900 in cash to Midwest Chicken. Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Transaction 1 Equipment (Delivery) Equipment (Restaurant) Cash Gain Answer is not complete. General Journal 3000 Debit 15,600 7,900 8,400 Credit 24,000
12:34 Brief Exercise 7-18 (Algo) Account for the exchange of long-term assets (LO7-6) China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $24,000 and $15,600 (original cost of $43,000 less accumulated depreciation of $27,400), respectively. To equalize market values of the exchanged assets, China Inn paid $7,900 in cash to Midwest Chicken. Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) No 1 Transaction 1 Equipment (Delivery) Equipment (Restaurant) Cash Gain Answer is not complete. General Journal 3000 Debit 15,600 7,900 8,400 Credit 24,000
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter9: Fixed Assets And Intangible Assets
Section: Chapter Questions
Problem 9.26EX
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![03:42:34
Brief Exercise 7-18 (Algo) Account for the exchange of long-term assets (LO7-6)
China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair
value and book value of the restaurant equipment were $24,000 and $15,600 (original cost of $43,000 less accumulated depreciation
of $27,400), respectively. To equalize market values of the exchanged assets, China Inn paid $7,900 in cash to Midwest Chicken.
Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
No
1
Transaction
1
Equipment (Delivery)
Equipment (Restaurant)
Cash
Gain
Answer is not complete.
General Journal
3000
Debit
15,600
7,900X
8,400
Credit
24,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6fb6e8b9-af41-4c26-bfa7-da236cfaf9b0%2Fb2510768-0a45-4644-8e4b-8851ceaf0f93%2Fohmvy6u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:03:42:34
Brief Exercise 7-18 (Algo) Account for the exchange of long-term assets (LO7-6)
China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair
value and book value of the restaurant equipment were $24,000 and $15,600 (original cost of $43,000 less accumulated depreciation
of $27,400), respectively. To equalize market values of the exchanged assets, China Inn paid $7,900 in cash to Midwest Chicken.
Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
No
1
Transaction
1
Equipment (Delivery)
Equipment (Restaurant)
Cash
Gain
Answer is not complete.
General Journal
3000
Debit
15,600
7,900X
8,400
Credit
24,000
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