Reference no: EM132601127

On September 3, 2021, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows:

                                              Robers' Asset                        Phifer's Asset

Original cost                          $165,000                            $185,000

Accumulated depreciation             91,000                          99,000

Fair value                                    88,500                            74,500

To equalize the exchange, Phifer paid Robers $14,000 in cash.

Required:

Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question 1) Record the exchange of equipment for robers company. The exchange has commercial substance for both companies. To equalize the exchange, Phifer paid Robers $14,000 cash.

Question 2) Record the exchange of equipment for Phifer Corporation. The exchange has commercial substance for both companies. To ewualize the exchange, phifer paid robers $14,000 in cash.