Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercia substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, sel "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercia substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, sel "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Oo.84.
Subject :- Account
Transcribed Image Text:Metlock Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the
operations of Bonita Company. The following information pertains to the exchange.
Equipment (cost)
Accumulated depreciation
Fair value of equipment
Cash given up
Show Transcribed Text
Bonita Company:
Metlock Co.
Show Transcribed Text
$33,600
22,800
15,000
Account Titles and Explanation
Metlock Company:
3,600
Bonita Company
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.)
Bonita Co.
Account Titles and Explanation
Metlock Company.
$33,600
12,000
18,600
Debit
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 O for the amounts. List all debit entries before credit entries.)
Credit
Debit
Credit
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