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 $62,000 Accumulated depreciation 50,000 25,000 Fair value 47,000 45,000 Bristol agrees to pay Denver $2,000 to complete the exchange. Required: Assuming the transaction has commercial substance, prepare journal entries for Denver and Bristol to record the exchange. Chart of Accounts Denver and Bristol General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 882 Gain on Exchange 141 Inventory 152 Prepaid Insurance EXPENSES 181 Building (Warehouse (new)) 500 Cost of Goods Sold 182 Building (Warehouse (old)) 511 Insurance Expense 185 Equipment 512 Utilities Expense 198 Accumulated Depreciation 521 Salaries Expense 532 Bad Debt Expense LIABILITIES 211 Accounts Payable 540 Interest Expense 541 Depreciation Expense 559 Miscellaneous Expenses 231 Salaries Payable 250 Unearned Revenue 892 Loss on Exchange 261 Income Taxes Payable 910 Income Tax Expense EQUITY 311 Common Stock 331 Retained Earnings 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 PAGE 9 PAGE 12 GENERAL JOURNAL DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT