Carlos Arruza Company exchanged equipment used in its manufacturing operations p

Question

Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $8,043 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange. Prepare the journal entries to record the exchange on the hooks 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.)

Explanation / Answer

a.

Carlos Arruza Company Date Accounts Debit$ Credit$ Equipment ($75,068-$50939+$8043)     32,172 Accumulated Depreciation—Equipment     50,939 Equipment (cost)     75,068 Cash       8,043

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---