Exercise 10-19 Sheffield Company exchanged equipment used in its manufacturing operations plus $3,600 in cash...
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Exercise 10-19 Sheffield Company exchanged equipment used in its manufacturing operations plus $3,600 in cash for similar equipment used in the operations of Tamarisk Company. The following information pertains to the exchange. Equipment (cost) Accumulated depreciation Fair value of equipment Cash given up Sheffield Co. $33,600 22,800 15,000 3,600 Tamarisk Co. $33,600 12,000 18,600 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 o for the amounts.) Debit Credit Account Titles and Explanation Sheffield Company: Tamarisk Company: Prepare the journal entries to record the exchange on the books of both companies. Assume that 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.) Debit Credit Account Titles and Explanation Sheffield Company. Tamarisk Company
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