For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.)
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Question:
Bramble Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Bramble Corporation gave the machine plus $435 to Sunland Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.
Bramble Corp. | Sunland Co. | |||||
Machine cost | $371 | $346 | ||||
Accumulated depreciation | 179 | –0– | ||||
Fair value | 109 | 544 |
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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