Question

On September 3, 2021, the Robers Company exchanged equipment with Phifer Corporation. The facts of the exchange are as follows: Original cost Accumulated depreciation Fair value Robers' Asset $ 165,000 91.ee 88. see Phifer's Asset $185.000 99.99 74,500 To equalize the exchange. Phifer paid Robers $14.000 in cash. Required: Record the exchange for both Robers and Phifer. The exchange has commercial substance for both companies. (If no entry is required for a transactlon/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the exchange of equipment for Robers Company. The exchange has commercial substance for both companies. To equalize the exchange, Phifer paid Robers 514,000 in cash. Note: Enter debits before credits. Event General Journal Debit Credit

Answer 1

1)	Robers entries:
	Equipment (new)	74500
	Accumulated Depreciation	91000
	Cash	14000
	Equipment		165000
	Gain on Sale		14500
	(To record exchange of equipment with commercial substance)
2)	Phifer's entries:
	Equipment(new)	88500
	Accumulated depreciation	99000
	Loss on Sale	11500
	Equipment		185000
	Cash		14000
	(To record exchange of equipment with commercial substance)