Skysong Corporation which manufactures shoes hired a recent

Skysong Corporation, which manufactures shoes, hired a recent college graduate to work in its accounting department. On the first day of work, the accountant was assigned to total a batch of invoices with the use of an adding machine. Before long, the accountant, who had never before seen such a machine, managed to break the machine. Skysong Corporation gave the machine plus $354 to Concord Business Machine Company (dealer) in exchange for a new machine. Assume the following information about the machines.

Skysong Corp.
(Old Machine)

Concord Co.
(New Machine)

For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select \"No Entry\" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

Skysong Corporation

Concord Business Machine Company

Solution

For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.)