Question

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MoveIt 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 MoveIt sold a delivery truck for $21,000. MoveIt had originally purchased the truck for $35,000 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) $14,000, (b) $11,000, and (c) $19,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Solution 4a) Bate Account op explanation Debit Greder Accumulated depreciation - Truck 14000 Cash 21000 Truck 35000 I [ To record sale of Trock ]

. 46) Tournal entry Debit Account & explanation Date Credit Accumulated depreciation Truck 11000 cash 21000 sale of equipment 3000 Loss on Truck 35000 [To record sale of Truck ] 4c) Journal entry :- Account & Date explanation Debit Gedet Accumulated depreciation - 19000 Truck cash 21000 Galn on sale of truck 5000 35000 Truck [To record sale of Truck