Prepare the entry to record the exchange of assets by global

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Reference no: EM132611101

Presented below are two independent transactions. Both transactions have commercial substance.

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:

Question (a) Prepare the entry to record the exchange of assets by Global Co.

Question (b) Prepare the entry to record the exchange of assets by Rijo Inc.

Reference no: EM132611101

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