Presented below are two independent transactions. Both transactions have commercial substance. 1. Global Co. exchanged old trucks
Question:
1. Global Co. exchanged old trucks (cost $64,000 less $22,000 accumulated depreciation) plus cash of $17,000 for new trucks. The old trucks had a fair value of $38,000.
2. Rijo Inc. trades its used machine (cost $12,000 less $4,000 accumulated depreciation) for a new machine. In addition to exchanging the old machine (which had a fair value of $9,000), Rijo also paid cash of $2,700.
Instructions
(a) Prepare the entry to record the exchange of assets by Global Co.
(b) Prepare the entry to record the exchange of assets by Rijo Inc.
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Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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