Exercise 10-19 Larkspur Company exchanged equipment used in its manufacturing operations plus $3,960 in cash...
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Accounting
Exercise 10-19 Larkspur Company exchanged equipment used in its manufacturing operations plus $3,960 in cash for similar equipment used in the operations of Cullumber Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Larkspur Co $36,960 25,080 16,500 3,960 Cullumber Co 36960 13,200 20,460 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 0 for the amounts.) Account Titles and Explanation Larkspur Company: Debit Credit
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