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Santana Company exchanged equipment used in its manufacturing operations plus $3,990 in cash for similar equipment used in the operations of Delaware Company. The following information pertains to the exchange.
Santana Co.
Delaware Co.
Equipment (cost)
$55,860
Accumulated depreciation
37,905
19,950
Fair value of equipment
26,933
30,923
Cash given up
3,990
(a) 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.)
No.
Account Titles and Explanation
Debit
Credit
(a)
Santana Company:
(b)
Delaware Company:
(b) 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.)
Santana Company
Delaware Company
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