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e journal entry to record this transaction i

e journal entry to record this transaction i

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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**Transaction for Sale of Truck with Accumulated Depreciation** A truck that was originally purchased for $72,000 has accumulated depreciation amounting to $48,000. The truck is sold for $8,500. To record this transaction accurately in the journal, consider the following options for journal entries: - **A.** - Debit Cash for $8,500 - Debit Truck for $72,000 - Credit Accumulated Depreciation – Truck for $48,000 - Credit Gain on Disposal for $32,500 - **B.** - Debit Cash for $15,500 - Debit Truck for $72,000 - Credit Accumulated Depreciation – Truck for $48,000 - Credit Gain on Disposal for $8,500 - **C.** - Debit Accumulated Depreciation – Truck for $48,000 - Credit Truck for $48,000 - **D.** - Debit Cash for $8,500 - Debit Accumulated Depreciation – Truck for $48,000 - Debit Loss on Disposal for $15,500 - Credit Truck for $72,000 This set of options details how to record the disposal of a depreciated asset when it is sold below its book value. Evaluate each option carefully to determine the correct journal entry.
Transcribed Image Text:**Transaction for Sale of Truck with Accumulated Depreciation** A truck that was originally purchased for $72,000 has accumulated depreciation amounting to $48,000. The truck is sold for $8,500. To record this transaction accurately in the journal, consider the following options for journal entries: - **A.** - Debit Cash for $8,500 - Debit Truck for $72,000 - Credit Accumulated Depreciation – Truck for $48,000 - Credit Gain on Disposal for $32,500 - **B.** - Debit Cash for $15,500 - Debit Truck for $72,000 - Credit Accumulated Depreciation – Truck for $48,000 - Credit Gain on Disposal for $8,500 - **C.** - Debit Accumulated Depreciation – Truck for $48,000 - Credit Truck for $48,000 - **D.** - Debit Cash for $8,500 - Debit Accumulated Depreciation – Truck for $48,000 - Debit Loss on Disposal for $15,500 - Credit Truck for $72,000 This set of options details how to record the disposal of a depreciated asset when it is sold below its book value. Evaluate each option carefully to determine the correct journal entry.
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