Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Kingbird Co. Oriole Co. Equipment (cost) $33,600 $33,600 Accumulated depreciation 22,800 12,000 Fair value of equipment 15,000 18,600 Cash given up 3,600 (a) Your answer is correct. 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 O for the amounts.) Account Titles and Explanation Debit Credit Kingbird Company: Equipment 14400 Accumulated Depreciation-Equipment 22800 Equipment 33600
Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Oriole Company. The following information pertains to the exchange. Kingbird Co. Oriole Co. Equipment (cost) $33,600 $33,600 Accumulated depreciation 22,800 12,000 Fair value of equipment 15,000 18,600 Cash given up 3,600 (a) Your answer is correct. 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 O for the amounts.) Account Titles and Explanation Debit Credit Kingbird Company: Equipment 14400 Accumulated Depreciation-Equipment 22800 Equipment 33600
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(b)
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 O for the amounts.)
Account Titles and Explanation
Debit
Credit
Kingbird Company.
Oriole Company](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F671de901-83b8-4f97-8655-0b1467b41a0f%2Fd3d0855a-d757-4226-9828-f4c1ba6dfe36%2Flxzkk4t_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b)
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 O for the amounts.)
Account Titles and Explanation
Debit
Credit
Kingbird Company.
Oriole Company
![Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the
operations of Oriole Company. The following information pertains to the exchange.
Kingbird Co.
Oriole Co.
Equipment (cost)
$33,600
$33,600
Accumulated depreciation
22,800
12,000
Fair value of equipment
15,000
18,600
Cash given up
3,600
(a)
Your answer is correct.
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 O for the amounts.)
Account Titles and Explanation
Debit
Credit
Kingbird Company:
Equipment
14400
Accumulated Depreciation-Equipment
22800
Equipment
33600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F671de901-83b8-4f97-8655-0b1467b41a0f%2Fd3d0855a-d757-4226-9828-f4c1ba6dfe36%2Fsiba9ab_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Kingbird Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the
operations of Oriole Company. The following information pertains to the exchange.
Kingbird Co.
Oriole Co.
Equipment (cost)
$33,600
$33,600
Accumulated depreciation
22,800
12,000
Fair value of equipment
15,000
18,600
Cash given up
3,600
(a)
Your answer is correct.
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 O for the amounts.)
Account Titles and Explanation
Debit
Credit
Kingbird Company:
Equipment
14400
Accumulated Depreciation-Equipment
22800
Equipment
33600
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