Question

Oriole Company exchanged equipment used in its manufacturing operations plus $3,300 in cash for similar equipment used in the operations of Waterway Company. The following information pertains to the exchange. Oriole Waterway Co. Co. $30,800 $30,800 Equipment (cost) 20,900 11,000 Accumulated depreciation Fair value of equipment 17,050 13,750 Cash given up 3,300 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 Debit Credit Oriole Company:

Answer 1

Answer
In the books of Oriole Co.
Account title	Debit	Credit
Equipment (New)	$                 13,200
Acc.Dep	$                 20,900
Cash		$                           3,300
Equipment (Old)		$                         30,800
In the books of Waterway Co.
Account title	Debit	Credit
Cash	$                   3,300
Acc.Dep	$                 11,000
Equipment (new)	$                 16,500
Equipment (Equipment old)		$                         30,800
2
In the books of Oriole Co.
Account title	Debit	Credit
Equipment (New)	$                 17,050
Acc.Dep (Old)	$                 20,900
Cash		$                           3,300
Equipment (Old)		$                         30,800
Gain on exchange of asset		$                           3,850
In the books of Waterway Co.
Account title	Debit	Credit
Cash	$                   3,300
Acc.Dep (Old)	$                 11,000
Equipment (New)	$                 13,750
Loss on exchange of asset	$                   2,950
Equipment (Old)		$                         30,800
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Answer 2

This what extremely helpful.