Colaw Company exchanges equipment with Eaton Company and Mantle Company exchanges equipment with Fiero Company. The following information pertains to the exchanges:

Instructions
Prepare the journal entries to record the exchanges on the books of Colaw Company and Mantle Company. The transaction has commercialsubstance.

Transcribed Image Text:

Colaw Company Mantle Company Equipment (cost) Accumulated depreciation Fair market value of the equipment Cash paid $114,000 50,000 75,000 45,000 $96,000 45,000 42,000