DO NOT ANSWER IF YOU ARE NOT 100% SURE!!

Jenny Smith owns 55% of the shares of Marin Corporation and 70% of the shares of Headland Ltd. Marin sold a used delivery van to Headland in exchange for used computer equipment. The van had a carrying value of $24,100 on Marins books and a fair value of $26,700. The computer equipment had a carrying value of $21,900 on Headlands books, and a fair value of $21,900. Show the journal entries for both Marin and for Headland.

Choose from the following LIST OF ACCOUNTS:

• Accumulated Depreciation - Buildings
• Accumulated Depreciation - Equipment
• Accumulated Depreciation - Machinery
• Buildings
• Cash
• Contributed Surplus
• Equipment
• Gain on Disposal of Buildings
• Gain on Disposal of Equipment
• Gain on Disposal of Land
• Gain on Disposal of Machinery
• Land
• Machinery
• Retained Earnings
• Vehicles

ALSO, pay attention to the number of accounts in each journal entry. There are 3 accounts in EACH journal entry (for Marin and Headland).

Debit Credit Account Titles and Explanation Marin will record: Headland will record