1) if service revenue this week is $500 record service revenue. 2) if cash $300 and record a debit to cash and a credit to unearned revenue. long term asset - $10,000 3) Your largest long term asset you trade with another company for a simliar but newer asset. Before you can record the exchange you must first record depreciation on your asset. Use the sum of years' digits method to caluclate your depreciation. If you are trading equipment, the useful life is 15 years, if a building (Plant), the useful life is 30 years and for both there is no salvage value. Whatever the book value is of your asset on the day of trade, you pay an additional 10% of the value in cash as you are now in ownership of a newer asset
1) if service revenue this week is $500 record service revenue.
2) if cash $300 and record a debit to cash and a credit to unearned revenue.
long term asset - $10,000
3) Your largest long term asset you trade with another company for a simliar but newer asset. Before you can record the exchange you must first record
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