Exchange shares-journal entry

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Reference no: EM1357212

S. Company exchanged 400 shares of Daily Company common stock, which Herman was holding as an investment, for equipment from West Company. The Daily Company common stock, which had been purchased by Herman for $50 per share, had a quoted market value of $58 per share at the date of exchange. The equipment had a recorded amount on West's books of $21,000.

What journal entry should Herman make to record this exchange?

Accounts are:

Equipment

Investment in Daily Co Common Stock

Gain on Disposal of Investment

Loss on Disposal of Investment

Reference no: EM1357212

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