Grouper Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in theoperations of Monty Company. The following information pertains to the exchange.GrouperMonty Co.Co.Equipment (cost)$38,640$38,640Accumulated depreciation26,22013,800Fair value of equipment17,25021,390Cash given up4,140 Prepare the journal entries to record the exchange on the books of both companies. Assume that the exchange has commercialsubstance. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entryis required, select "No Entry" for the account titles and enter 0 for the amounts.)Account Titles and ExplanationDebitCreditGrouper CompanyMonty Company

Grouper Co. Monty Co. Fair Value of Old Equipment 17250 21390 Less: Book Value of…

Grouper Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Grouper Monty Co. Co. Equipment (cost) $38,640 $38,640 Accumulated depreciation 26,220 13,800 Fair value of equipment 17,250 21,390 Cash given up 4,140

Grouper Company exchanged equipment used in its manufacturing operations plus $4,140 in cash for similar equipment used in the operations of Monty Company. The following information pertains to the exchange. Grouper Monty Co. Co. Equipment (cost) $38,640 $38,640 Accumulated depreciation 26,220 13,800 Fair value of equipment 17,250 21,390 Cash given up 4,140

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...

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