Rizzos Delivery Company and Overlands Express Delivery exchanged delivery trucks on January 1, 2014. Rizzos truck cost

Question:

Rizzo’s Delivery Company and Overland’s Express Delivery exchanged delivery trucks on January 1, 2014. 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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Accounting Principles

ISBN: 9781118566671

11th Edition

Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso

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