Question

Speedy Package is California's largest express transportation company. In addition to the largest fleet of all-cargo aircraft in California, the company has more than 655 aircraft and 57,000 vehicles and trailers that pick up and deliver packages. Assume that Speedy Package sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:______.
Delivery truck cost Accumulated depreciation $ 55,000 39,600
Required:
Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the disposal of the truck, assuming the truck was sold for $15,400 cash. Record the disposal of the truck, assuming that the truck was sold for $16,500 cash. Record the disposal of the truck, assuming the truck was sold for $12,700 cash.

Answer 1

Answer:

Date    General Journal                         Debit       Credit

            Cash                                         $15,400

            Accumulated Depreciation    $39,600

                    Equipment - Delivery truck              $55,000

           (Assuming the truck was sold for $15,400 cash)

            Cash                                         $16,500

            Accumulated Depreciation     $39,600

                     Gain on sale                                      $1,100

                     Equipment - Delivery truck              $55,000

            (Assuming the truck was sold for $16,500 cash)

            Cash                                          $12,700

            Accumulated Depreciation      $39,600

            Loss on sale                              $2,700

                      Equipment - Delivery truck               $55,000

             (Assuming the truck was sold for $12,700 cash)