Question

Macho Taco sold a food truck on March 1, 2017. The accounts showed adjusted balances on February 28, 2017, as follows:

Food Truck	$	61,000
Accumulated Depreciation, Food Truck		37,050

Required:
Record the sale of the food truck assuming the cash proceeds were: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

a.

$

23,950

b.

$

31,100

c.

$

21,100

d.

$

0 (the food truck was scrapped).

• 1 Record the sale of the van for $23,950.

• 2 Record the sale of the van for $31,100.

• 3 Record the sale of the van for $21,100.

• 4 Record the sale of the van for $0; it was scrapped.

Answer 1

The journal entry is shown below:

1)

Accumulated depreciation..Dr....$37,050

Cash/Bank.........................Dr......$23,950

Food truck........................Cr.......$61,000

(To record the sales of food truck)

2)

Accumulated depreciation..Dr....$37,050

Cash/Bank.........................Dr......$31,100

Food truck........................Cr.......$61,000

Profit on sales of food truck..Cr....$7,150

(To record the sales of food truck)

3)

Accumulated depreciation..Dr....$37,050

Cash/Bank.........................Dr......$21,100

Loss on sales of food truck..Dr...$2,850

Food truck........................Cr.......$61,000

(To record the sales of food truck)

4)

Accumulated depreciation..Dr....$37,050

Cash/Bank.........................Dr......$0

Loss on sales of food truck...Dr....$23,950

Food truck........................Cr.......$61,000

(To record the sales of food truck)