Required information [The following information applies to the questions displayed below.] FedEx Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 91,000 ground vehicles that pick up and deliver packages. Assume that FedEx sold a delivery truck for $16,000. FedEx had originally purchased the vehicle and recorded it in the Truck account for $28,000, 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) $12,000, (b) $10,000, and (c) $15,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Required information [The following information applies to the questions displayed below.] FedEx Corporation is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 91,000 ground vehicles that pick up and deliver packages. Assume that FedEx sold a delivery truck for $16,000. FedEx had originally purchased the vehicle and recorded it in the Truck account for $28,000, 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) $12,000, (b) $10,000, and (c) $15,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: Present Truck New Truck Purchase cost new $ 30,000 $ 39,000 Remaining book value $ 17,000 - Overhaul needed now $ 16,000 - Annual cash operating costs $ 15,500 $ 14,000 Salvage value-now $ 9,000 - Salvage value-five years from now $ 8,000 $ 10,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 9% discount rate. Click here to view…
Speed, Inc., is a shipping company. On 1/1/20, the company purchases a new commercial sleeper truck for $790,000 cash. The expected residual value of the truck is $60,000 and the expected useful life is 10 years. The company estimates that the truck will be used to drive 1,000,000 miles over its useful life (120,000 miles in 2020; 90,000 miles in 2021 & all subsquent years). For the units-of-activity method, round the depreciaiton-per-unit to two decimal places before using it. You PART A - STRAIGHT LINE DEPRECIATION Income StatementDepreciation Expense Year Ended 12/31/2020fill in the blank 1 Year Ended 12/31/2021 fill in the blank 2 Balance SheetAccumulated Depreciation As of 12/31/2020fill in the blank 3 As of 12/31/2021fill in the blank 4 PART B - UNITS-OF-ACTIVITY DEPRECIATION Income StatementDepreciation Expense Year Ended 12/31/2020fill in the blank 5 Year Ended 12/31/2021 fill in the blank 6 Balance SheetAccumulated Depreciation As of 12/31/2020fill in the…
Is this correct?
Dd.104.
! Required information [The following information applies to the questions displayed below.] Exact Photo Service purchased a new color printer at the beginning of Year 1 for $36,110. The printer is expected to have a four-year useful life and a $3,800 salvage value. The expected print production is estimated at $1,781,500 pages. Actual print production for the four years was as follows: Year 1 Year 2 Year 3 Year 4 Total 550,700 481,800 376,300 394,700 1,803,500 The printer was sold at the end of Year 4 for $4,100. Required: a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount. Year 1 Year 2 Year 3 Year 4 Total accumulated depreciation Depreciation Expense
! Required information [The following information applies to the questions displayed below.] Faucet Landscaping purchased a tractor at a cost of $31,000 and sold it three years later for $16,700. Faucet recorded depreciation using the straight-line method, a five-year service life, and a $4,000 residual value. Tractors are included in the Equipment account. 2. Assume the tractor was sold for $10,900 instead of $16,700. Record the sale. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Transaction 1 1 Cash General Journal Debit Credit 10.900
Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $5.2 million. The machinery can be sold to the Romulans today for $7.4 million. Klingon's current balance sheet shows net fixed assets of $4 million, current liabilities of $830,000, and net working capital of $142,000. If all the current accounts were liquidated today, the company would receive $945,000 cash. a. What is the book value of Klingon's total assets today? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. b. What is the sum of the market value of NWC and the market value of fixed assets? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567. a. Book value of total assets b. Sum of market value of NWC and fixed assets
! Required information [The following information applies to the questions displayed below.] VQT Companies 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 VQT sold a delivery truck for $29,000. VQT had originally purchased the vehicle and recorded it in the Truck account for $49,000 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) $17,000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Bilboa Freightlines, S.A., of Panama, has a small truck that it uses for intracity deliveries. The truck is worn out and must be either overhauled or replaced with a new truck. The company has assembled the following information: Present Truck New Truck Purchase cost new $ 30,000 $ 39,000 Remaining book value $ 17,000 - Overhaul needed now $ 16,000 - Annual cash operating costs $ 15,500 $ 14,000 Salvage value-now $ 9,000 - Salvage value-five years from now $ 8,000 $ 10,000 If the company keeps and overhauls its present delivery truck, then the truck will be usable for five more years. If a new truck is purchased, it will be used for five years, after which it will be traded in on another truck. The new truck would be diesel-operated, resulting in a substantial reduction in annual operating costs, as shown above. The company computes depreciation on a straight-line basis. All investment projects are evaluated using a 9% discount rate. Click here to view…
None
Fast Delivery is the world's largest express transportation company. In addition to the world's largest fleet of all-cargo aircraft, the company has more than 657 aircraft and 62,000 vehicles and trailers that pick up and deliver packages. Assume that Fast Delivery sold a dellvery truck that had been used in the business for three years. The records of the company reflected the following: Delivery truck cost Accumulated depreciation $ 43,000 28,000 Required: 1. Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry transaction/event, select "No journal entry required" in the first account field.) required for a a. $15,000 cash b. $17,300 cash c. $13,300 cash View transaction list Journal entry worksheet 2 3 Record the disposal of the truck, assuming the truck was sold for $15,000 cash. Note: Enter debits before credits. General Journal Debit Credit Transaction a
None