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On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Phifer's Asset Robers' Asset $ 175,000 $ 195,000 99,000 107,000 91,500 75,500 To equalize the exchange, Phifer paid Robers $16,000 in cash. Original cost Accumulated depreciation Fair value Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 N Event 1 2 Cash > Answer is complete but not entirely correct. General Journal Equipment-new Accumulated depreciation Equipment-old Gain on exchange of assets Equipment-old Accumulated depreciation Loss on exchange of assets Cash Equipment-new Debit 16,000 75,500 107,000 91,500 99,000 X 20,500 × Credit 195,000 88,000 16,000 195,000

On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Phifer's Asset Robers' Asset $ 175,000 $ 195,000 99,000 107,000 91,500 75,500 To equalize the exchange, Phifer paid Robers $16,000 in cash. Original cost Accumulated depreciation Fair value Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 N Event 1 2 Cash > Answer is complete but not entirely correct. General Journal Equipment-new Accumulated depreciation Equipment-old Gain on exchange of assets Equipment-old Accumulated depreciation Loss on exchange of assets Cash Equipment-new Debit 16,000 75,500 107,000 91,500 99,000 X 20,500 × Credit 195,000 88,000 16,000 195,000

FINANCIAL ACCOUNTING
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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On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Phifer's Asset Robers' Asset $ 175,000 $ 195,000 107,000 99,000 91,500 75,500 To equalize the exchange, Phifer paid Robers $16,000 in cash. Original cost Accumulated depreciation Fair value Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 Event 1 2 Cash > Answer is complete but not entirely correct. General Journal Equipment-new Accumulated depreciation Equipment-old Gain on exchange of assets Equipment-old Accumulated depreciation Loss on exchange of assets Cash Equipment-new Debit 16,000 75,500 107,000 X 91,500 99,000 X 20,500 Credit 195,000 X 88,000 X 16,000 195,000
Transcribed Image Text:On September 3, 2024, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Phifer's Asset Robers' Asset $ 175,000 $ 195,000 107,000 99,000 91,500 75,500 To equalize the exchange, Phifer paid Robers $16,000 in cash. Original cost Accumulated depreciation Fair value Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. No 1 2 Event 1 2 Cash > Answer is complete but not entirely correct. General Journal Equipment-new Accumulated depreciation Equipment-old Gain on exchange of assets Equipment-old Accumulated depreciation Loss on exchange of assets Cash Equipment-new Debit 16,000 75,500 107,000 X 91,500 99,000 X 20,500 Credit 195,000 X 88,000 X 16,000 195,000
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