Question

Carlos Arruza Co.

Tony LoBianco Co.

No.

Account Titles and Explanation

Debit

Credit

(a)

Carlos Arruza Company:

(b)

Tony Lo Bianca Company:

No.

Account Titles and Explanation

Debit

Credit

(a)

Carlos Arruza Company

(b)

Tony LoBainco Company

Carlos Arruza Company exchanged equipment used in its manufacturing operations plus $6,609 in cash for similar equipment used in the operations of Tony LoBianco Company. The following information pertains to the exchange.

 

 

Carlos Arruza Co.

 

Tony LoBianco Co.

Equipment (cost)

 

$61,684

 

 

$61,684

 

Accumulated depreciation

 

41,857

 

 

22,030

 

Fair value of equipment

 

27,538

 

 

34,147

 

Cash given up

 

6,609

 

 

 

 

             

 

 

 

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