Question: Jess Pegula Co . exchanges a truck for a similar truck. The transaction has commercial substance. Original cost of old truck 1 0 8 ,

Jess Pegula Co. exchanges a truck for a similar truck. The transaction has commercial substance.
Original cost of old truck 108,000
Accumulated depreciation of old truck 80,600
Fair value of old truck 25,200
Cash paid by Jess Pegula Co. in trade 8,100
a. Make the journal entry for the exchange from the point of view of Jess Pegula Co. only.
b. What is the effect of this entry on total assets, liabilities, equity, revenues, expenses, and
net income?

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