Journal entries to record the exchange on the books

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Reference no: EM131190710

Larkspur Company exchanged equipment used in its manufacturing operations plus $4,320 in cash for similar equipment used in the operations of Cullumber Company. The following information pertains to the exchange. Larkspur Co. Cullumber Co. Equipment (cost) $40,320 $40,320 Accumulated depreciation 27,360 14,400 Fair value of equipment 18,000 22,320 Cash given up 4,320 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 0 for the amounts.) Account Titles and Explanation Debit Credit Larkspur Company: Cullumber Company: Show List of Accounts 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 0 for the amounts.) Account Titles and Explanation Debit Credit Larkspur Company Cullumber Company

Reference no: EM131190710

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