Flounder 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. Flounder Corporation gave the machine plus $442 to Culver Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines. Flounder Corp.(Old Machine) Culver Co.(New Machine) Machine cost $377 $351 Accumulated depreciation 182 –0– Fair value 111 553 For each company, prepare the necessary journal entry to record the exchange. (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 0 for the amounts.) Account Titles and Explanation Debit Credit Flounder Corporation Culver Business Machine Company Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter6: Business Expenses

Section: Chapter Questions

Problem 71IIP

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Flounder 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. Flounder Corporation gave the machine plus $442 to Culver Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.

	Flounder Corp. (Old Machine)	Culver Co. (New Machine)
Machine cost	$377		$351
Accumulated depreciation	182		–0–
Fair value	111		553

For each company, prepare the necessary journal entry to record the exchange. (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 0 for the amounts.)

Account Titles and Explanation	Debit	Credit
Flounder Corporation





Culver Business Machine Company

Click if you would like to Show Work for this question:

Open Show Work

SHOW LIST OF ACCOUNTS

LINK TO TEXT

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