Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ramirez company exchanged equipment used in its ma

Ramirez Company exchanged equipment used in its manufacturing operations plus $6,000 in cash for similar...

80.2K

Verified Solution

Question

Accounting

Ramirez Company exchanged equipment used in its manufacturing operations plus $6,000 in cash for similar equipment used in the operations of Kennedy Company. The following information pertains to the exchange.

Ramirez Co Kennedy Co

Equipment (cost) 84,000 $84,000

Accumulated depreciation 57,000 30,000

Fair value of equipment 40,500 46,500

Cash given up 6,000

Instructions

Prepare the journal entries to record the exchange on the books of both companies. Assume that exchange lacks commercial substance.

Answer & Explanation Solved by verified expert
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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The advertised diameter of steel rods manufactured by a certain company is 50 mm. During a...

Basic Math
Q

Given that ? (alpha) is an upper bound of a given set of S of real...

Advance Math
Q

It is believed that Lake Tahoe Community College LTCC Intermediate Algebra students get less than...

Statistics
Q

Find the general antiderivative of f x 5x 4 x 6 x 4 x

Calculus
Q

Which of the following is a solution to the equation sinx - cosx = 1?(A)...

Calculus
Q

An observer views the space shuttle from a distance of a mi from the launchpad...

Algebra
Q

Write the system of linear equations represented by the augmented matrix Use variables x y...

Algebra
Q

120mL 0 9 Sodium Chloride to infuse over 4 hour Drip factory 60gtts mL How...

Algebra
Q

E13.4(LO 1) Company uses the straight-line method of amortization for bond premium or discount. ...

Accounting
Q

What are the two man areas in how to prevent fraud within an organization? What...

Accounting
Q

Richard and Devito share partnership profits and losses in the ratio of 6:4. Richard's Capital...

Accounting
Q

Question 9 6 Points Assume that Greggs Corporation had sales during the past year of...

Accounting