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Please help me solve this asap! Thanks in advance! Wildhorse Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment
Please help me solve this asap! Thanks in advance!
Wildhorse Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment used in the operations of Sheffield Company. The following information pertains to the exchange. Wildhorse Co. Sheffield Co. Equipment (cost) $36,960 $36,960 Accumulated depreciation 25,080 13,200 Fair value of equipment 16,500 20,460 Cash given up 3,960 (b) Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercial substance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Wildhorse Company. Sheffield CompanyStep by Step Solution
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