Answer:
Journal entries
Explanation:
Before passing the journal entries, first we have to determine the book value of truck which is
= Cost of delivery truck - accumulated depreciation
= $56,000 - $41,300
= $14,700
Now the journal entries are as follows
a. Cash Dr $14,700
Accumulate depreciation $41,300
To Delivery truck $56,000
(Being the disposal of the truck is recorded)
b) Cash Dr $16,400
Accumulate depreciation $41,300
To Delivery truck $56,000
To Gain on sale $1,700
(Being the disposal of the truck is recorded)
c) Cash Dr $12,900
Accumulate depreciation $41,300
Loss on sale $1,800
To Delivery truck $56,000
(Being the disposal of the truck is recorded)
