On October 5, 2015, JenCo exchanged a piece of manufacturing equipment for another piece of equipment owned by SouthCo. JenCo was required to pay an amount of cash to finalize the exchange. The following information is obtained regarding the exchange: JenCo SouthCo Equipment, at cost. 22,000 27.000 Accumulated depreciation, 11,000 10,000 Fair value of equipment 14,000 19,000 Cash paid 5,000 Please make sure your final answer(s) are accurate to 2 decimal places. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) Prepare the journal entries required by each company to record the exchange, assuming the exchange is considered to have commercial substance. JenCo SouthCo General Journal Page G7 General Journal Page G7 Date Account/Explanation PR Debit Credit Date Account/Explanation / PR Debit Credit + = b) Prepare the journal entries required by each company to record the exchange, assuming the exchange does not have commercial substance. JenCo SouthCo General Journal Account/Explanation Page G7 PR Debit Credit General Journal Account/Explanation Date Page G7 PR Debit Credit Date c) Prepare the journal entries required by each company to record the exchange, assuming the exchange does not have commercial substance and assuming the accumulated depreciation recorded by JenCo is only $5,000 instead of $11,000. JenCo South Co General Journal General Journal Page G7 Date Account/Explanation PR Debit Credit Date Account/Explanation PR Debit Credit Page G7 On October 5, 2015, JenCo exchanged a piece of manufacturing equipment for another piece of equipment owned by SouthCo. JenCo was required to pay an amount of cash to finalize the exchange. The following information is obtained regarding the exchange: JenCo SouthCo Equipment, at cost. 22,000 27.000 Accumulated depreciation, 11,000 10,000 Fair value of equipment 14,000 19,000 Cash paid 5,000 Please make sure your final answer(s) are accurate to 2 decimal places. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). a) Prepare the journal entries required by each company to record the exchange, assuming the exchange is considered to have commercial substance. JenCo SouthCo General Journal Page G7 General Journal Page G7 Date Account/Explanation PR Debit Credit Date Account/Explanation / PR Debit Credit + = b) Prepare the journal entries required by each company to record the exchange, assuming the exchange does not have commercial substance. JenCo SouthCo General Journal Account/Explanation Page G7 PR Debit Credit General Journal Account/Explanation Date Page G7 PR Debit Credit Date c) Prepare the journal entries required by each company to record the exchange, assuming the exchange does not have commercial substance and assuming the accumulated depreciation recorded by JenCo is only $5,000 instead of $11,000. JenCo South Co General Journal General Journal Page G7 Date Account/Explanation PR Debit Credit Date Account/Explanation PR Debit Credit Page G7
