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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

When a habitat is destroyed and replaced with one species, a monoculture, this directly results...

Basic Math
1.2K views

Consider8 the homogenous linear second order differential equation y′′ −10y′ +25y = 0 (⋆) Follow the presentation of...

Psychology
1.2K views

in your own words what are the challenges of juvenile delinquency, depression and suicide for adolescents....

General Management
1.2K views

Critically examine problem structuring methods and apply problem analysis methods and theory to specific business issues...

Biology
1.2K views

Now that we have studied the various types of vaccines, consider the current resurgence of...

Geometry
1.2K views

ven is the Midpoint of WY VYZ ve WX AYZX W 3 Complete the Two...

Basic Math
1.2K views

Suppose your credit card has a balance of 5 100 and an annual interest rate...

Statistics
1.2K views

340 340 310 320 310 360 350 330 260 380 340 320 310 360 350...

Calculus
1.2K views

Find the particular soluti dy dx 8x7 e x y

Accounting
1.2K views

Morgan Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole...

Finance
1.2K views

Frankie wants to use the money from selling the old car towards the buying a...

Finance
1.2K views

During the year, the Senbet Discount Tire Company had gross sales of $1.18 million. The...