I have no clue how to figure this out or where to start could someone explain? D

Question

I have no clue how to figure this out or where to start could someone explain?

Disposal of Plant Asset Canyon Company has a used delivery truck that originally cost $24,200. Straight-line depreciation on the truck has been recorded for three years, with a $3,500 expected salvage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of the third year. Four months into the fourth year, Canyon disposes of the truck. Required Prepare journal entries to record a. Depreciation expense to the date of disposal. b. Sale of the truck for cash at its book value. c. Sale of the truck for $15,000 cash. d. Sale of the truck for $12,000 cash. e. Theft of the truck. Canyon carries no insurance for theft.

Explanation / Answer

General Journal Reference Description Debit Credit a Depreciation Expense -Truck 1150 Accumlated Depreciation- Truck 1150 To record depreciation expense for 4 months b Cash 12700 Accumlated Depreciation -Truck 11500 Truck 24200 To record sale of truck at Book Value c Cash 15000 Accumlated Depreciation -Truck 11500 Truck 24200 Gain on sale of Plant Assets 2300 To record sale of truck for $ 15,000 d Cash 12000 Loss on sale of Plant Assets 700 Accumlated Depreciation -Truck 11500 Truck 24200 To record sale of truck for $ 12,000 e Loss on sale of Plant Assets 12700 Accumlated Depreciation -Truck 11500 Truck 24200 To record theft of uninsured truck.

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