WK 10 & 11 Homework Help Save & Exit Submit Saving Check my work 6 On September
ID: 2551585 • Letter: W
Question
WK 10 & 11 Homework Help Save & Exit Submit Saving Check my work 6 On September 3, 2018, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Robers' Asset Phifer's Asset Original cost Accumulated depreciation Fair value $120,000 55,000 75,000 $140,000 63,000 70,000 20 polnts To equalize the exchange, Phifer paid Robers $5,000 in cash. eBook Required Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Print View transaction list References Journal entry worksheet 2 Record the exchange of equipment for Robers Company. The exchange has commercial substance for both companies. To equalize the exchange, Phifer paid Robers $5,000 in cash Note: Enter debits before credits Event General Journal Debit Credit Mc Graw Prev 60f 7 Next>Explanation / Answer
Date
Particulars
Debit
Credit
Phifer's books
Equipment (Cash paid+Fair value)
(5000+70000)
$75,000
Accumulated depreciation
$63,000
Loss on exchange (Bal fig)
$7,000
Equipment (original cost)
$140,000
Cash
$5,000
Robers books
Equipment (fair value)
$70,000
Accumulated depreciation
$55,000
cash
$5,000
Equipment cost old
$120,000
Gain on exchange (Bal fig)
$10,000
Date
Particulars
Debit
Credit
Phifer's books
Equipment (Cash paid+Fair value)
(5000+70000)
$75,000
Accumulated depreciation
$63,000
Loss on exchange (Bal fig)
$7,000
Equipment (original cost)
$140,000
Cash
$5,000
Robers books
Equipment (fair value)
$70,000
Accumulated depreciation
$55,000
cash
$5,000
Equipment cost old
$120,000
Gain on exchange (Bal fig)
$10,000
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