Question

Sheffield Company traded a used welding machine (cost $12,600, accumulated depreciation $4,200) for office equipment with an estimated fair value of $7,000. Sheffield also paid $4,200 cash in the transaction. Prepare the journal entry to record the exchange. (The exchange has commercial substance.)

Account Titles

Debit

Credit

1.

2.

3.

4.

5.

Account Titles

Debit

Credit

 



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