Madison & Gallatin Companies exchanged assets during the year. Assume that the following cases are...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Madison & Gallatin Companies exchanged assets during the year. Assume that the following cases are independent and rely on the following data.
Madison Co. Gallatin Co.
Equipment (cost) $3,000,000 $2,700,000
Accumulated depreciation 1,400,000 1,600,000
Fair value of equipment 1,200,000
Cash paid 300,000
Cash received 300,000
A. Assuming the exchange has commercial substance, record the exchange on Gallatins Books.
Gallatins Books:
Accounts Debit Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
B. Assuming the exchange does not have commercial substance, record the exchange for Madison.
Madisons Books:
Accounts Debit Credit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.