Question

BACK Exercise 10-19 (Part Level Submission) Pharoah Company exchanged equipment used in its manufacturing operations plus $3,420 in cash for similar equipment used in the operations of Novak Company. The following information pertains to the exchange Pharoah Co. 31,920 21,660 14,250 3,420 Novak Co. Equipment (cost) 31,920 11,400 17,670 Fair value of equipment Cash given up 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.) Acceant Titles and Esplanatien Novak Company: Click if you would like to Show Work for this question: en Show Work Attempts: O of 3 used SAVE FOR LATER The parts of this question must be completed in order. This part will be available when you complete the part above

Answer 1

Pharoh company

Account titles and explanation	debit	Credit
Equipment (balancing figure)	13680
Accumulated depreciation	21660
Cash		3420
Equipment		31920

Novak company

Account titles and explanation	debit	Credit
Equipment	14250
Accumulated depreciation	11400
Loss on exchange	2850
Cash	3420
Equipment		31920