Question

Required information [The following information applies to the questions displayed below. Movelt Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $26,000. Movelt had originally purchased the truck for $43,000 and had recorded depreciation for three years. 4. Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $17,000, (b) $12,000, and (c) $19,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 Record the sale of the truck that has an accumulated depreciation balance of $17,000 at the time of disposal Note: Enter debits before credits. Transaction Credit General Journal Debit а Record entry Clear entry View general journal

For Accumulated Depreciation Parts (A) (B) & (C)

Answer 1

a) Journal entry

No	General journal	Debit	Credit
	Cash	26000
	Accumulated depreciation-equipment	17000
	Equipment		43000

b) Journal entry

No	General journal	Debit	Credit
	Cash	26000
	Accumulated depreciation-equipment	12000
	Loss on sale of equipment	5000
	Equipment		43000

c) Journal entry

No	General journal	Debit	Credit
	Cash	26000
	Accumulated depreciation-equipment	19000
	Gain on sale of equipment		2000
	Equipment		43000