Pharoah Ltd. exchanged 460 common shares of Grants Corp. for new equipment from Milliken Sales. Pharoah was
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Pharoah Ltd. exchanged 460 common shares of Grants Corp. for new equipment from Milliken Sales. Pharoah was holding these shares as an investment and the shares were originally purchased for $81/share. These shares had a quoted market value of $100 per share at the date of exchange. The equipment had a recorded amount on Milliken's books of $38600, but the fair value was not available.
Record the journal entry that Pharoah should make to record this exchange.
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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