Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, for $22,300. At acquisition Perfect assumed that the car would have an estimated life of 3 years and a residual value of $4,000. Assume that Perfect has recorded straight-linedepreciation expense for 2017 and 2018.Required:Prepare the journal entry to record the sale of the car assuming the car sold for (a) $10,100 cash, (b) S7,700 cash, and (c) $11,200 cash. Thecompany recorded the car as equipment.

Original price of car = $22,300 Estimated life = 3 years Residual value = $4,000 Annual depreciation…

Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, for $22,300. At acquisition Perfect assumed that the car would have an estimated life of 3 years and a residual value of S4,000. Assume that Perfect has recorded straight-line depreciation expense for 2017 and 2018. Required: Prepare the journal entry to record the sale of the car assuming the car sold for (a) $10,100 cash, (b) $7,700 cash, and (c) $11,200 cash. The company recorded the car as equipment.

Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, for $22,300. At acquisition Perfect assumed that the car would have an estimated life of 3 years and a residual value of S4,000. Assume that Perfect has recorded straight-line depreciation expense for 2017 and 2018. Required: Prepare the journal entry to record the sale of the car assuming the car sold for (a) $10,100 cash, (b) $7,700 cash, and (c) $11,200 cash. The company recorded the car as equipment.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, for $22,300. At acquisition Perfect assumed that the car would have an estimated life of 3 years and a residual value of $4,000. Assume that Perfect has recorded straight-line
depreciation expense for 2017 and 2018.
Required:
Prepare the journal entry to record the sale of the car assuming the car sold for (a) $10,100 cash, (b) S7,700 cash, and (c) $11,200 cash. The
company recorded the car as equipment.

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