Brief Exercise Algo Account for the exchange of longterm assets LO
China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $ and $original cost of $ less accumulated depreciation of $ respectively. To equalize market values of the exchanged assets, China Inn paid $ in cash to Midwest Chicken.
Record the gain or loss for China Inn on the exchange of the equipment. If no entry is required for a particular transactionevent select No Journal Entry Required" in the first account field.
Answer is complete but not entirely correct.
tableNoTransaction,General Journal,,Debit,CreditEquipment Deliverygamma Accumulated Depreciation,Cash,Gain,Equipment Restaurant
