Question
Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $4,833 in cash for similar equipment used in the operations of Tony LoBianco Company.
Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $4,833 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange. Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance
| Carlos Arruza Co. | Tony LoBianco Co. | |||||
| Equipment (cost) | $45,108 | $45,108 | ||||
| Accumulated depreciation | 30,609 | 16,110 | ||||
| Fair value of equipment | 20,138 | 24,971 | ||||
| cash | 4,833
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The Politics Of Public Management The HRDC Audit Of Grants And Contributions
Authors: David A. Good
2nd Edition
0802085873, 978-0802085870
