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Brief Exercise 7-18(Algo) Account for the exchange of long-term assets (LO7-6) China Inn...

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Accounting

Brief Exercise 7-18(Algo) Account for the exchange of long-term assets (LO7-6)
China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $17,500 and $10,200(original cost of $36,000 less accumulated depreciation of $25,800), respectively. To equalize market values of the exchanged assets, China Inn paid $8,100 in cash to Midwest Chicken.
Record the gain or loss for China Inn 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 field.)
Answer is complete but not entirely correct.
\table[[No,Transaction,General Journal,,Debit,Credit],[1,1,Equipment (Delivery),\gamma ,9,400,],[,Accumulated Depreciation,(,25,800,],[,Cash,(,,8,100],[,Gain,(,,7,300],[,Equipment (Restaurant),0,,36,000]]
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