Please provide answer in text (Without image),, every entry should have narration please Novak Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in theoperations of Splish Company. The following information pertains to the exchange.Equipment (cost)Accumulated depreciationFair value of equipmentCash given upNovak Co.$42,00028,50018,7504,500Splish Company:Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercialsubstance. (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. List all debit entries before credit entries.)Account Titles and ExplanationNovak Company:Splish Co.$42.00015,00023,250Debit1000Credit

Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Novak Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the operations of Splish Company. The following information pertains to the exchange. Novak Co. Equipment (cost) $42.000 Accumulated depreciation 28,500 Fair value of equipment 18,750 Cash given up 4,500 (a) 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. List all debit entries before credit entries.) Account Titles and Explanation Novak Company: Splish Co. $42.000 15,000 23,250 Solish Company: Debit Credit

Novak Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the operations of Splish Company. The following information pertains to the exchange. Novak Co. Equipment (cost) $42.000 Accumulated depreciation 28,500 Fair value of equipment 18,750 Cash given up 4,500 (a) 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. List all debit entries before credit entries.) Account Titles and Explanation Novak Company: Splish Co. $42.000 15,000 23,250 Solish Company: Debit Credit

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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