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Two independent companies, Denver and Bristol, each own a warehouse, and they agree to exchange them. The following information for the two warehouses is available:   Denver Bristol Cost $100,000 $62,000 Accumulated depreciation 50,000 25,000 Fair value 47,000 45,000         Bristol agrees to pay Denver $2,000 to complete the exchange. Required:   Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.   CHART OF ACCOUNTS Denver and Bristol General Ledger   ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Building (Warehouse (new)) 182 Building (Warehouse (old)) 185 Equipment 198 Accumulated Depreciation   LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable   EQUITY 311 Common Stock 331 Retained Earnings   Assume the exchange has commercial substance and occurred on April 1. Prepare journal entries for Denver and Bristol to record the exchange. General Journal Instructions     GENERAL JOURNAL     DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1           2           3           4           5

Two independent companies, Denver and Bristol, each own a warehouse, and they agree to exchange them. The following information for the two warehouses is available:   Denver Bristol Cost $100,000 $62,000 Accumulated depreciation 50,000 25,000 Fair value 47,000 45,000         Bristol agrees to pay Denver $2,000 to complete the exchange. Required:   Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.   CHART OF ACCOUNTS Denver and Bristol General Ledger   ASSETS 111 Cash 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Building (Warehouse (new)) 182 Building (Warehouse (old)) 185 Equipment 198 Accumulated Depreciation   LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable   EQUITY 311 Common Stock 331 Retained Earnings   Assume the exchange has commercial substance and occurred on April 1. Prepare journal entries for Denver and Bristol to record the exchange. General Journal Instructions     GENERAL JOURNAL     DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1           2           3           4           5

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Two independent companies, Denver and Bristol, each own a warehouse, and they agree to exchange them. The following information for the two warehouses is available:
 
Denver
Bristol
Cost $100,000 $62,000
Accumulated depreciation 50,000 25,000
Fair value 47,000 45,000
     
 
Bristol agrees to pay Denver $2,000 to complete the exchange.
Required:
  Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.

 

CHART OF ACCOUNTS
Denver and Bristol
General Ledger
  ASSETS
111 Cash
121 Accounts Receivable
141 Inventory
152 Prepaid Insurance
181 Building (Warehouse (new))
182 Building (Warehouse (old))
185 Equipment
198 Accumulated Depreciation
  LIABILITIES
211 Accounts Payable
231 Salaries Payable
250 Unearned Revenue
261 Income Taxes Payable
  EQUITY
311 Common Stock
331 Retained Earnings
 
Assume the exchange has commercial substance and occurred on April 1. Prepare journal entries for Denver and Bristol to record the exchange.
General Journal Instructions
 
 
GENERAL JOURNAL
 
  DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
1
 
 
 
 
 
2
 
 
 
 
 
3
 
 
 
 
 
4
 
 
 
 
 
5
 
 
 
 
 
 

 

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