Liang and Cruz Deliveries is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Liang and Cruz sold a delivery truck for $31,000. Liang and Cruz had originally purchased the vehicle and recorded it in the Truck account for $51,000 and had recorded depreciation for three years. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $20,000, (b) $16,000, and (c) $26,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Liang and Cruz Deliveries is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that Liang and Cruz sold a delivery truck for $31,000. Liang and Cruz had originally purchased the vehicle and recorded it in the Truck account for $51,000 and had recorded depreciation for three years. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $20,000, (b) $16,000, and (c) $26,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Liang and Cruz Deliveries is the world's leading express-distribution company. In addition to its 643
aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume
that Liang and Cruz sold a delivery truck for $31,000. Liang and Cruz had originally purchased the
vehicle and recorded it in the Truck account for $51,000 and had recorded depreciation for three years.
4. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a)
$20,000, (b) $16,000, and (c) $26,000. (If no entry is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
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Step 1: Introduce to journal entry
VIEWStep 2: Working for gain or loss on disposal of accumulated depreciation is $20,000
VIEWStep 3: Working for gain or loss on disposal of accumulated depreciation is $16,000
VIEWStep 4: Working for gain or loss on disposal of accumulated depreciation is $26,000
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