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 $22,500 and $15,000 (original cost of $40,000 less accumulated depreciation of $25,000), respectively. To equalize market values of the exchanged assets, China Inn paid $7,600 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.) View transaction list View journal entry worksheet No 1 Transaction 1 Loss Cash General Journal Equipment (Restaurant) Debit 7,600 Credit 40,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 $22,500 and $15,000 (original cost of $40,000 less accumulated depreciation
of $25,000), respectively. To equalize market values of the exchanged assets, China Inn paid $7,600 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.)
View transaction list View journal entry worksheet
No
1
Transaction
1
Loss
Cash
General Journal
Equipment (Restaurant)
Debit
7,600
Credit
40,000
Transcribed Image Text: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 $22,500 and $15,000 (original cost of $40,000 less accumulated depreciation of $25,000), respectively. To equalize market values of the exchanged assets, China Inn paid $7,600 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.) View transaction list View journal entry worksheet No 1 Transaction 1 Loss Cash General Journal Equipment (Restaurant) Debit 7,600 Credit 40,000
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