Sheridan Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that...
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Accounting
Sheridan Limited exchanged equipment that it uses in its manufacturing operations for similar equipment that is used in the operations of Concord Limited. Sheridan also paid Concord $3,100 in cash. The following information pertains to the exchange.
Sheridan
Concord
equipment
$57,000
$61,500
accumulated depreciation
$31,250
$20,000
fair value of the equipment
$27,500
$30,600
Prepare the journal entries to record the exchange on the books of both companies, assuming the exchange is determined to have commercial substance. (Credit account titles are automatically indented when the 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.)
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