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The following information applies to the questions displayed below Movelt Corpor

ID: 2594716 • Letter: T

Question

The following information applies to the questions displayed below Movelt Corporation is the world's leading express-distribution company In addition to the world's largest fleet of all -cargo aircraft, the company has more than 54,000 ground vehicles that pick up and deliver packages. Assume that Movelt sold a delivery truck for $21000 Movelt had originally purchased the truck for $35,000 and had recorded depreciation for three years 4· 900 points Prepare the journal entry to record the disposal of the truck assuming that Accumulated Deprecdiation was (a) $14,000, (D) $11,000, and (c) $19,000, (ir no entry is required for a transactionevent, select No Journal Entry Required" in the first account field.) Journal entry worksheet 2 Record the sale of the truck that has an accumulated depreciation balance of $14,000 at the time of disposal. Note: Enter debits before credits Transaction General Journal Debit Credit

Explanation / Answer

Transaction

General Ledger

Debit

Credit

If the accumulated depreciation is $14,000

a)

Cash

21000

Accumulated depreciation

14000

Truck asset

35000

(being truck sold for 21,000)

If the accumulated depreciation is $11,000

b)

Cash

21000

Accumulated depreciation

11000

Loss on sale of truck

3000

Truck asset

35000

(being truck sold for 21,000)

If the accumulated depreciation is $19,000

c)

Cash

21000

Accumulated depreciation

19000

Truck asset

35000

Profit on sale of truck

5000

(being truck sold for 21,000)

Transaction

General Ledger

Debit

Credit

If the accumulated depreciation is $14,000

a)

Cash

21000

Accumulated depreciation

14000

Truck asset

35000

(being truck sold for 21,000)

If the accumulated depreciation is $11,000

b)

Cash

21000

Accumulated depreciation

11000

Loss on sale of truck

3000

Truck asset

35000

(being truck sold for 21,000)

If the accumulated depreciation is $19,000

c)

Cash

21000

Accumulated depreciation

19000

Truck asset

35000

Profit on sale of truck

5000

(being truck sold for 21,000)