(a)
Question 3
View Policies
Current Attempt in Progress
Sunland Company exchanged equipment used in its manufacturing operations plus $3,720 in cash for similar equipment used in the operations of Coronado Company. The following information pertains to the exchange
Sunland
Co
Coronado
Co.
Equipment (cost)
$34,720
$34,720
Accumulated depreciation
23,560
12,400
Fair value of equipment
15,500
19,220
Cash given up
3,720
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 enter manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts)
Account Titles and Explanation
Sunland Company:
Debit
Credit