Question

Fast Delivery is the world's largest express transportation company. In addition to the world's largest fleet of all-cargo aircraft, the company has more than 659 aircraft and 68,000 vehicles and trailers that pick up and deliver packages. Assume that Fast Delivery sold a delivery truck that had been used in the business for three years. The records of the company reflected the following: Delivery truck cost Accumulated depreciation $44,000 28,700 Required: 1. Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) ence a. $15.300 cash b. $16,400 cash c. $13,500 cash View transaction list Journal entry worksheet 1 2 3 Record the disposal of the truck, assuming the truck was sold for $15,300 cash.

Answer 1

Solution

Transaction	General Journal	Debit	Credit
a	Cash	$     15,300.00
	Accumulated depreciation-Equipment	$     28,700.00
	Gain on sale of Equipment		$                   -
	Equipment		$    44,000.00
	(To record sale of Equipment (Truck))
b	Cash	$     16,400.00
	Accumulated depreciation-Equipment	$     28,700.00
	Gain on sale of Equipment		$      1,100.00
	Equipment		$    44,000.00
	(To record sale of Equipment (Truck))
c	Cash	$     13,500.00
	Accumulated depreciation-Equipment	$     28,700.00
	loss on sale of Equipment	$        1,800.00
	Equipment		$    44,000.00
	(To record sale of Equipment (Truck))

Working

	Transaction a	Transaction b	Transaction c
Truck cost	$ 44,000.00	$ 44,000.00	$ 44,000.00
Accumulated depreciation	$ 28,700.00	$ 28,700.00	$ 28,700.00
Book value	$ 15,300.00	$ 15,300.00	$ 15,300.00
Sales proceeds	$ 15,300.00	$ 16,400.00	$ 13,500.00
Profit (loss) on sales	$                 -	$    1,100.00	$ (1,800.00)