Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2022. 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. (a) Journalize the exchange for Rizzo's Delivery Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment) Account Titles and Explanation Debit Credit
Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2022. 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. (a) Journalize the exchange for Rizzo's Delivery Company. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Include in your journal entry separate account entries for both the new and old equipment) Account Titles and Explanation Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2022. 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.
(a)
Journalize the exchange for Rizzo's Delivery Company. (List all debit entries before credit entries. Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. Include in your journal entry separate account entries for both the new and old equipment.)
Account Titles and Explanation
Debit
Credit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F17673734-d2af-4393-a498-133847a471b5%2Fe5526926-8b93-4aa3-a661-1ae1e2c9ab68%2F172g0i5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rizzo's Delivery Company and Overland's Express Delivery exchanged delivery trucks on January 1, 2022. 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.
(a)
Journalize the exchange for Rizzo's Delivery Company. (List all debit entries before credit entries. Credit account titles are automatically
indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the
amounts. Include in your journal entry separate account entries for both the new and old equipment.)
Account Titles and Explanation
Debit
Credit
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