Lily Company exchanged machinery with an appraised value of $3,546,000, a recorded cost of $5,422,000 and accumulated depreciation of $2,711,000 with Jennifer Corporation for machinery Jennifer owns. The machinery has an appraised value of $3,324,000, a recorded cost of $6,360,000, and accumulated depreciation of $3,498,000. Jennifer also gave Lily $222,000 in the exchange. Assume depreciation has already been updated.

I completed the one with commercial substance.

Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round intermediate calculations to 5 decimal places and final answers to 0 decimal places, e.g. 12,515.) Lily

Account Titles and Explanation	Debit	Credit

Jennifer

Account Titles and Explanation	Debit	Credit

Your answer is correct. Prepare the entries on both companies' books assuming that the exchange had commercial substance. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Lily Account Titles and Explanation Machinery Debit Credit 3324000 Cash 222000 Accumulated Depreciation-Machinery 2711000 Gain on Disposal of Machinery 835000 Machinery 5422000 Jennifer Account Titles and Explanation Machinery Debit Credit 3546000 Accumulated Depreciation-Machinery 3498000 Machinery 6360000 Gain on Disposal of Machinery 462000 Cash 222000 eTextbook and Media