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Record the gain or loss for Midwest Chicken on the exchange of the equipment.

Record the gain or loss for Midwest Chicken on the exchange of the equipment.

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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China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment. The fair value and book value of the delivery equipment given were $30,400 and $32,300 (original cost of $36,600 less accumulated depreciation of $4,300), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $8,900 in cash from China Inn. Record the gain or loss for Midwest Chicken on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list Journal entry worksheet 1 Record the gain or loss for Midwest Chicken on the exchange of the equipment. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:China Inn and Midwest Chicken exchanged assets. Midwest Chicken received restaurant equipment and gave delivery equipment. The fair value and book value of the delivery equipment given were $30,400 and $32,300 (original cost of $36,600 less accumulated depreciation of $4,300), respectively. To equalize market values of the exchanged assets, Midwest Chicken received $8,900 in cash from China Inn. Record the gain or loss for Midwest Chicken on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list Journal entry worksheet 1 Record the gain or loss for Midwest Chicken on the exchange of the equipment. Note: Enter debits before credits. Transaction 1 Record entry General Journal Clear entry Debit Credit View general journal
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