Carlos Arruza Co. Tony LoBianco Co. (a) Prepare the journal entries to record th

Question

Carlos Arruza Co.

Tony LoBianco Co.

(a)

Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange lacks 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 0 for the amounts.)

Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $4,947 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.

Carlos Arruza Co.

Tony LoBianco Co.

Equipment (cost) $46,172 $46,172 Accumulated depreciation 31,331 16,490 Fair value of equipment 20,613 25,560 Cash given up 4,947

Explanation / Answer

Carlos Arruza Co. Tony LoBianco Co. (a) Prepare the journal entries to record th

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