Sold an electric truck-lift to Leila Stierman Co. for $2620 cash. The original cost was $7900 with salvage value of $900, a life of 10 years, and accumulated depreciation recorded through 12/31/17 is $4,550. The straight-line method is used. (Note: the company follows the practice of recording a half year's depreciation in the year of acquisition and a half year in the year of disposal.) First, bring the depreciation expense up to date in the general journal. Then journalize the entire entry for the sale in the cash receipts journal.
Sold an electric truck-lift to Leila Stierman Co. for $2620 cash. The original cost was $7900 with salvage value of $900, a life of 10 years, and accumulated depreciation recorded through 12/31/17 is $4,550. The straight-line method is used. (Note: the company follows the practice of recording a half year's depreciation in the year of acquisition and a half year in the year of disposal.) First, bring the depreciation expense up to date in the general journal. Then journalize the entire entry for the sale in the cash receipts journal.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sold an electric truck-lift to Leila Stierman Co. for $2620 cash. The original cost was | ||||||
$7900 with salvage value of $900, a life of 10 years, and |
||||||
recorded through 12/31/17 is $4,550. The straight-line method is used. (Note: the | ||||||
company follows the practice of recording a half year's depreciation in the year of | ||||||
acquisition and a half year in the year of disposal.) First, bring the depreciation expense | ||||||
up to date in the general journal. Then journalize the entire entry for the sale in the cash | ||||||
receipts journal. |
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