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) Account Titles and Explanation Debit Credit Tamarisk 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) Account Titles and Explanation Debit Credit Tamarisk Company:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![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.)
Account Titles and Explanation
Debit
Credit
Tamarisk Company:
Vaughn Company:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e72357-f51a-4346-816f-754b42008ad8%2F703b1a84-eefc-4295-ae0f-8fcf16e47ed7%2Fz9kc54f_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.)
Account Titles and Explanation
Debit
Credit
Tamarisk Company:
Vaughn Company:
![Tamarisk Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the
operations of Vaughn Company. The following information pertains to the exchange.
Tamarisk Co.
Vaughn Co.
Equipment (cost)
$42,000
$42,000
Accumulated depreciation
28,500
15,000
Fair value of equipment
18,750
23,250
Cash given up
4,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F54e72357-f51a-4346-816f-754b42008ad8%2F703b1a84-eefc-4295-ae0f-8fcf16e47ed7%2Fxpi3d2t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Tamarisk Company exchanged equipment used in its manufacturing operations plus $4,500 in cash for similar equipment used in the
operations of Vaughn Company. The following information pertains to the exchange.
Tamarisk Co.
Vaughn Co.
Equipment (cost)
$42,000
$42,000
Accumulated depreciation
28,500
15,000
Fair value of equipment
18,750
23,250
Cash given up
4,500
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