The Jasperson Company is selling their old truck for $6,000. They paid $45,000 f

Question

The Jasperson Company is selling their old truck for $6,000. They paid $45,000 for it and have depreciated it $38,000 over it's life. Jourmalize the sale. PROBLEM#5 A new buyer for the truck in Problem #4 has made an offer of $9,000 for our old truck. Journalize the sale of the truck to them. PROBLEM #6 Our owner has changed his mind again! Now he has decided to trade-in the old truck for a new truck. The new truck sells for $56,000. The truck dealership has agreed to give us $5,000 for the old truck towards the purchase of the new truck. Journalize the trade-in on Jasperson's books. PROBLEM #2 The owner has managed to get the truck dealership to increase their offer on our old truck. They now agree to give us $10,000 for the old truck towards the purchase of the new truck. Journalize the trade-in on Jasperson's books. depreciation worksheet

Explanation / Answer

Journal entries S.no. Accounts title and explanations Debit $ Credit $ 1 Cash Account Dr. 6000 Accumulated depreciation Account Dr. 38000 Loss on Sale of assets Account Dr. 1000       Truck equipment Account 45000 2 Cash Account Dr. 9000 Accumulated depreciation Account Dr. 38000       Truck equipment Account 45000        Gain on sale of assets Account 2000 3 New Truck equipment Account Dr 56000 Accumulated depreciation Account Dr. 38000 Loss on exchange of assets Account Dr. 2000     Truck equipment Account Dr. 45000      Cash account 51000 4 New Truck equipment Account Dr 56000 Accumulated depreciation Account Dr. 38000     Truck equipment Account Dr. 45000      Cash account 46000      Gain on exchange of assets Account 3000

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