Disposal of Property, Plant, and Equipment Small Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $32,450. At acquisition, Small had estimated that the truck would have an estimated life of 5 years and a residual value of $4,950. At December 31, 2012, the truck had a book value of $10,450. Small uses the straight-line method.
Disposal of Property, Plant, and Equipment
Small Company sold a delivery truck on April 1, 2013. Swann had acquired the truck on January 1, 2009, for $32,450. At acquisition, Small had estimated that the truck would have an estimated life of 5 years and a residual value of $4,950. At December 31, 2012, the truck had a book value of $10,450. Small uses the straight-line method.
Required:
Need assignment help for this question?
If you need assistance with writing your essay, we are ready to help you!
OUR PROCESS
Order
Payment
Writing
Delivery
Why Choose Us: Cost-efficiency, Plagiarism free, Money Back Guarantee, On-time Delivery, Total Сonfidentiality, 24/7 Support, 100% originality
1a. Prepare any necessary journal entries to record the sale of the truck, assuming it sold for $10,175: For compound entries, if an amount box does not require an entry, leave it blank or enter “0”.
Depreciation | Depreciation Expense | ? | |
Accumulated Depreciation | ? | ||
Sale | Cash | 10175 | 0 |
Accumulated Depreciation | ? | 0 | |
Truck | 0 | ? | |
Gain on Disposal of PPE | 0 | ? |