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Cullumber Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that...

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Question

Accounting

Cullumber Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the
operations of Bramble Limited. Cullumber also paid Bramble $2,900 in cash The following information pertains to the exchange.
(a)
Your answer is correct.
Prepare the journal entries to record the ewchange on the books of both companies, assuming the ewchange is determined to have
commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry
is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Cullumber Limited
(b)
Prepare the journal entries to record the ewchange on the books of both companies, assuming the ewchange is determined not to
have commercial substance. (Credit account titles are dutomatically indented when the amount is entered. Do not indent manually. If no
entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Cullumber Limited
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