Sheffield Company exchanged machinery with an appraised value of $$3,489,000,$ a recorded cost of $$5,312,000$ and accumulated

depreciation of $$2,656,000$ with Wildhorse Corporation for machinery Wildhorse owns. The machinery has an apraised value of

$$3,348,000,$ a recorded cost of $$6,360,000,$ and accumulated depreciation of $$3,498,000.$ Wildhorse also gave Sheffield $$141,000$ in

the exchange. Assume depreciation has already been updated.

$($a$)$

Your answer is partially 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. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.$)$

Sheffield

Account Titles and Explanation

Debit

Credit

Machinery

$3348000$

Accumulated Depreciation$-$Machinery

$$

Wildhorse

Account Titles and Explanation

Debit

Credit

Machinery

$3498000$

Accumulated Depreciation$-$Machinery

Gain on Disposal of Machinery

Machinery