China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment. The fair value and book value of the delivery equipment given were $22,200 and $26,100 (original cost of $30,800 less accumulated depreciation of $4,700), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $7,200 in cash from China Inn. Record the gain or loss for Midwest Chicken 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.)
China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment. The fair value and book value of the delivery equipment given were $22,200 and $26,100 (original cost of $30,800 less accumulated depreciation of $4,700), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $7,200 in cash from China Inn. Record the gain or loss for Midwest Chicken 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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Qw.19a.
![China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment.
The fair value and book value of the delivery equipment given were $22,200 and $26,100 (original cost of $30,800 less accumulated
depreciation of $4,700), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $7,200 in cash
from China Inn.
Record the gain or loss for Midwest Chicken 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
Journal entry worksheet
Record the gain or loss for Midwest Chicken on the exchange of the
equipment.
Note: Enter debits before credits.
Transaction.
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71a6b9af-79cd-4d12-a858-098c897cdcbb%2F82bf0dca-9070-4ed0-90b3-8ea5fcd0de35%2Fwd7pnxq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment.
The fair value and book value of the delivery equipment given were $22,200 and $26,100 (original cost of $30,800 less accumulated
depreciation of $4,700), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $7,200 in cash
from China Inn.
Record the gain or loss for Midwest Chicken 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
Journal entry worksheet
Record the gain or loss for Midwest Chicken on the exchange of the
equipment.
Note: Enter debits before credits.
Transaction.
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
![China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment.
The fair value and book value of the delivery equipment given were $22,200 and $26,100 (original cost of $30,800 less accumulated
depreciation of $4,700), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $7,200 in cash
from China Inn.
Record the gain or loss for Midwest Chicken 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
Journal entry worksheet
Record the gain or loss for Midwest Chicken on the exchange of the
equipment.
Note: Enter debits before credits.
Transaction.
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F71a6b9af-79cd-4d12-a858-098c897cdcbb%2F82bf0dca-9070-4ed0-90b3-8ea5fcd0de35%2Fm2a0xzs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment.
The fair value and book value of the delivery equipment given were $22,200 and $26,100 (original cost of $30,800 less accumulated
depreciation of $4,700), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $7,200 in cash
from China Inn.
Record the gain or loss for Midwest Chicken 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
Journal entry worksheet
Record the gain or loss for Midwest Chicken on the exchange of the
equipment.
Note: Enter debits before credits.
Transaction.
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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