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Suppose Girard Company acquires some equipment from dijon Company in exchange for issuance of 15,000 shares of Girard's common stock. The equipment was carried on dijon's book at the $525,000 original cost less accumulated depreciation of $250,000. Girard's stock actively trades and has a current market value of $35 per share. Its par value is $1 per share.
Requirements
Question 1. By using the balance sheet equation, show the effects of the transaction of the accounts of girard company and dijon company.
Question 2. Show the journal entries on the book of Girard Company and Dijon Company.
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