Rizzos Delivery Company and Overlands Express Delivery exchanged delivery trucks on January 1, 2019. Rizzos truck cost

Question:

Rizzo’s Delivery Company and Overland’s Express Delivery exchanged delivery trucks on January 1, 2019. Rizzo’s truck cost $22,000. It has accumulated depreciation of

$15,000 and a fair value of $3,000. Overland’s truck cost $10,000. It has accumulated depreciation of $8,000 and a fair value of $3,000. The transaction has commercial substance.

Instructions

(a) Journalize the exchange for Rizzo’s Delivery Company.

(b) Journalize the exchange for Overland’s Express Delivery.

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Related Book For  book-img-for-question

Financial Accounting

ISBN: 9781119298229,9781119305842

10th Edition

Authors: Jerry J. Weygandt , Donald E. Kieso , Paul D. Kimmel

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