Nash Company exchanged equipment used in its manufacturing operations plus 53,120 in cash for similar equipesent used in the operations of Crane Company. The following information pertains to the exchange Nash Co $29,120 Crane Co $29,120 10,400 19,760 13,000 16,120 3,120 Equipment (cost) Accumulated depreciation Fair value of equipment Cash giving 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 ne entry is required, select "No Entry for the account titles a entries) Account titles and explanation Nash Company Equipment Accumulated depreciation equipment Equipment Crane company Equipment Accumulated Depreciation-Equipment Loss on Disposal of qu Cash Debit 1240 13000 2600 Credit 29120 I 29120 amounts List entries before credit Equipment B. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (Credit account tites 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 List all debit entries before credit entries) Nesh Company?
Nash Company exchanged equipment used in its manufacturing operations plus 53,120 in cash for similar equipesent used in the operations of Crane Company. The following information pertains to the exchange Nash Co $29,120 Crane Co $29,120 10,400 19,760 13,000 16,120 3,120 Equipment (cost) Accumulated depreciation Fair value of equipment Cash giving 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 ne entry is required, select "No Entry for the account titles a entries) Account titles and explanation Nash Company Equipment Accumulated depreciation equipment Equipment Crane company Equipment Accumulated Depreciation-Equipment Loss on Disposal of qu Cash Debit 1240 13000 2600 Credit 29120 I 29120 amounts List entries before credit Equipment B. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (Credit account tites 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 List all debit entries before credit entries) Nesh Company?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Nash Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar equipment used in the operations of Crane Company. The following information pertains to the exchange
Nash Co
Crane Co
$29,120
$29,120
19,760
10,400
13,000
16,120
3,120
Equipment (cost)
Accumulated depreciation
Fair value of equipment
Cash giving up
I
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 0 for the amounts. List all debit entries before credit
entries.)
Account titles and explanation
Nash Company
Equipment
Accumulated depreciation equipment
Equipment
Cash
Debit
Crane Company?
12480
19760
Credit
Crane company
Equipment
Accumulated Depreciation-Equipment
Loss on Disposal of Equipment
Cash
Equipment
B. Prepare the journal entries to record the exchange on the books of both companies. Assume that 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 List all debit entries before credit entries.)
Nash Company?
13000
10400
2600
3120
29120
3120
29120
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