Could you please help me solve the accounting below? Please see the attached fil
ID: 2600524 • Letter: C
Question
Could you please help me solve the accounting below? Please see the attached file. Please help to do it step-by-step with all the workings and solutions. Thank you very much!
Commonwealth Delivery is the world's leading express-distribution company. In addition to the world's largest fleet of all cargo aircraft, the company has more than 662 aircraft and 52,000 vehicles and trailers that pick up and deliver packages. Assume that Commonwealth Delivery 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 $ 38,000 22,800 Required: 1. 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.) a. $15,200 cash b. $17,300 cash c. $12,900 cashExplanation / Answer
transaction
General journal
debit
credit
a
Cash
15200
Accumulated Depreciaiton
22800
Equipment - truck
38000
(sold truck with no profit no loss)
b.
Cash
17300
Accumulated Depreciaiton
22800
Equipment - truck
Gain on sale
38000
(sold truck on profit = 17300+22800-38000 = 2100)
2100
C
Cash
12900
Accumulated Depreciaiton
22800
Loss on sale
2300
Equipment - truck
38000
(sold truck on loss = 38000-12900-22800 =2300)
transaction
General journal
debit
credit
a
Cash
15200
Accumulated Depreciaiton
22800
Equipment - truck
38000
(sold truck with no profit no loss)
b.
Cash
17300
Accumulated Depreciaiton
22800
Equipment - truck
Gain on sale
38000
(sold truck on profit = 17300+22800-38000 = 2100)
2100
C
Cash
12900
Accumulated Depreciaiton
22800
Loss on sale
2300
Equipment - truck
38000
(sold truck on loss = 38000-12900-22800 =2300)