Grouper Company exchanged equipment used in its manufacturing operations plus $4,080 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Grouper Co. $38,080 25,840 Monty Company: 17,000 4,080 Account Titles and Explanation Grouper Company: Monty Co. $38,080 13,600 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks 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 O for the amounts.) 21,080 Debit Credit
Grouper Company exchanged equipment used in its manufacturing operations plus $4,080 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up (a) Grouper Co. $38,080 25,840 Monty Company: 17,000 4,080 Account Titles and Explanation Grouper Company: Monty Co. $38,080 13,600 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks 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 O for the amounts.) 21,080 Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Grouper Company exchanged equipment used in its manufacturing operations plus $4,080 in cash for similar equipment used in the
operations of Monty Company. The following information pertains to the exchange.
Equipment (cost)
Accumulated depreciation
Fair value of equipment
Cash given up
(a)
Grouper Co.
$38,080
25,840
Monty Company:
17,000
4,080
Account Titles and Explanation
Grouper Company:
Monty Co.
$38,080
13,600
Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks 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 O for the amounts.)
21,080
Debit
Credit
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