Exercise 10-19 Pearl Company exchanged equipment used in its manufacturing operations plus $4,260 in cash for...
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Exercise 10-19 Pearl Company exchanged equipment used in its manufacturing operations plus $4,260 in cash for similar equipment used in the operations of Martinez Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Account Titles and Explanation Pearl Company: 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.) Equipment Accumulated Depreciation- Equipment Pearl Co. $39,760 26,980 17,750 4,260 Cash Martinez Co. $39,760 14,200 22,010 Debit Credit Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has 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.) Account Titles and Explanation Pearl Company Equipment Accumulated Depreciation. Equipment Cash Gain on Disposal of Equipn Martinez Company Cash Debit Credit Equipment Accumulated Depreciation- Loss on Disposal of Equipn Equipment Click if you would like to Show Work for this question: Open Show Work Exercise 10-19 Pearl Company exchanged equipment used in its manufacturing operations plus $4,260 in cash for similar equipment used in the operations of Martinez Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Account Titles and Explanation Pearl Company: 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.) Equipment Accumulated Depreciation- Equipment Pearl Co. $39,760 26,980 17,750 4,260 Cash Martinez Co. $39,760 14,200 22,010 Debit Credit Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has 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.) Account Titles and Explanation Pearl Company Equipment Accumulated Depreciation. Equipment Cash Gain on Disposal of Equipn Martinez Company Cash Debit Credit Equipment Accumulated Depreciation- Loss on Disposal of Equipn Equipment Click if you would like to Show Work for this question: Open Show Work
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Answer Exchange lacks Commercial Substance Pearl Company Account Title... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
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