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 CreditExplanation / 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)
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