Question
Waterway Company exchanged machinery with an appraised value of $3,476,000, a recorded cost of $5,314,000 and accumulated depreciation of $2,657,000 with Lisa Corporation for machinery
Waterway Company exchanged machinery with an appraised value of $3,476,000, a recorded cost of $5,314,000 and accumulated depreciation of $2,657,000 with Lisa Corporation for machinery Lisa owns. The machinery has an appraised value of $3,401,000, a recorded cost of $6,460,000, and accumulated depreciation of $3,553,000. Lisa also gave Waterway $75,000 in the exchange. Assume depreciation has already been updated.
(a)
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.) Waterway
Account Titles and Explanation | Debit | Credit |
Lisa
Account Titles and Explanation | Debit | Credit |
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