China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $23,500 and $15,400 (original cost of $42,000 less accumulated depreciation of $26,600), respectively. To equalize market values of the exchanged assets, China Inn paid $7,800 in cash to Midwest Chicken. Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the gain or loss for China Inn on the exchange of the equipment. Note: Enter debits before credits Transaction General Journal Debit Credit < Prev 7 of 7 Next

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair
value and book value of the restaurant equipment were $23,500 and $15,400 (original cost of $42,000 less accumulated depreciation
of $26,600), respectively. To equalize market values of the exchanged assets, China Inn paid $7,800 in cash to Midwest Chicken.
Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event,
select "No Journal Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
Record the gain or loss for China Inn on the exchange of the equipment.
Note: Enter debits before credits
Transaction
General Journal
Debit
Credit
< Prev
7 of 7
Next
Transcribed Image Text:China Inn and Midwest Chicken exchanged assets. China Inn received delivery equipment and gave restaurant equipment. The fair value and book value of the restaurant equipment were $23,500 and $15,400 (original cost of $42,000 less accumulated depreciation of $26,600), respectively. To equalize market values of the exchanged assets, China Inn paid $7,800 in cash to Midwest Chicken. Record the gain or loss for China Inn on the exchange of the equipment. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the gain or loss for China Inn on the exchange of the equipment. Note: Enter debits before credits Transaction General Journal Debit Credit < Prev 7 of 7 Next
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