Question

In: Accounting

Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange...

Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:

Denver

Bristol

Cost $90,000 $45,000
Accumulated depreciation 55,000 25,000
Fair value 30,000 30,000

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PAGE 9PAGE 12

GENERAL JOURNAL

Score: 30/101

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

PAGE 9PAGE 12

GENERAL JOURNAL

Score: 30/101

DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT

1

2

3

4

Required:

1. Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
2.

Assuming the exchange does not have commercial substance, prepare journal entries for Denver and Bristol to record the exchange.

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