Smile Company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: Smile Frown Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,000 1,750,000 500,000 Required: Prepare journal entry on the books of Smile and Frown.
Smile Company exchanged used equipment for another equipment of Frown Company. The following information pertains to the exchange: Smile Frown Equipment Accumulated depreciation Fair value of equipment 2,400,000 2,000,000 500,000 2,200,000 1,750,000 500,000 Required: Prepare journal entry on the books of Smile and Frown.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Problem 23-7 (ACP)
Smile Company exchanged used equipment for another
equipment of Frown Company. The following information
pertains to the exchange:
Smile
Frown
Equipment
Accumulated depreciation
Fair value of equipment
2,400,000
2,000,000
500,000
2,200,000
1,750,000
500,000
Required:
Prepare journal entry on the books of Smile and Frown.
654
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