Flounder Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Flounder Corporation gave the machine plus $442 to Culver Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines. Flounder Corp.(Old Machine) Culver Co.(New Machine) Machine cost $377 $351 Accumulated depreciation 182 –0– Fair value 111 553 For each company, prepare the necessary journal entry to record the exchange. (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.) Account Titles and Explanation Debit Credit Flounder Corporation Culver Business Machine Company Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flounder Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Flounder Corporation gave the machine plus $442 to Culver Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.

	Flounder Corp. (Old Machine)	Culver Co. (New Machine)
Machine cost	$377		$351
Accumulated depreciation	182		–0–
Fair value	111		553

For each company, prepare the necessary journal entry to record the exchange. (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.)

Account Titles and Explanation	Debit	Credit
Flounder Corporation





Culver Business Machine Company

Click if you would like to Show Work for this question:

Open Show Work

SHOW LIST OF ACCOUNTS

LINK TO TEXT

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