Instructions Two independent companies, Denver and Bristol, each own a warehouse, and they agree to exchange them. The following information for the two warehouses is available: Denver Bristol Cost $100,000 $55,000 Accumulated depreciation 50,000 20,000 Fair value 48,000 45,000 Bristol agrees to pay Denver $3,000 to complete the exchange. Required: Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange. General Journal Assume the exchange has commercial substance and occurred on April 1. Prepare journal entries for Denver and Bristol to record the exchange. General Journal Instructions 1 2 Chart of Accounts ASSETS 111 Cash PAGE 9 PAGE 12 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF DEBIT CREDIT CHART OF ACCOUNTS Denver and Bristol General Ledger 121 Accounts Receivable 141 Inventory 152 Prepaid Insurance 181 Building (Warehouse (new)) 182 Building (Warehouse (old)) 185 Equipment 198 Accumulated Depreciation LIABILITIES 211 Accounts Payable 231 Salaries Payable 250 Unearned Revenue 261 Income Taxes Payable REVENUE 411 Sales Revenue 882 Gain on Exchange EXPENSES 500 Cost of Goods Sold 511 Insurance Expense 512 Utilities Expense 521 Salaries Expense 532 Bad Debt Expense 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 892 Loss on Exchange 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings