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

Waterway Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar...

60.1K

Verified Solution

Question

Accounting

image
image
Waterway Company exchanged equipment used in its manufacturing operations plus $3,120 in cash for similar equipment used in the operations of Wildhorse Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Waterway Co. $29,120 19,760 13,000 3,120 Wildhorse Co. $29,120 10,400 16,120 (a) Your answer is correct. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Waterway Company: Debit Credit Equipment 12480 Accedi Emaiamani Prepare the journal entries to record the exchange on the books of both companies, Assume that the exchange has commercial substance. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Credit Waterway Company Debit Wildhorse Company

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