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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
Problem 1: By using the balance sheet equation, show the effects of the transaction of the accounts of girard company and dijon company.
Problem 2: Show the journal entries on the book of Girard Company and Dijon Company.
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