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 $29,000. Movelt had originally purchased the truck for $49,0O00 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) $20,000, (b) $17,000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Answer

• Requirement 4

	Accounts title	Debit	Credit
a)	Cash	$29,000
	Accumulated Depreciation - Truck	$20,000
	Truck		$49,000
b)	Cash	$29,000
	Accumulated Depreciation - Truck	$17,000
	Loss on disposal	$3,000
	Truck		$49,000
c)	Cash	$29,000
	Accumulated Depreciation - Truck	$25,000
	Gain on Disposal		$5,000
	Truck		$49,000