Question

On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. The equipment had accumulated depreciation of $16,000 at December 31, 2018. Annual depreciation on this equipment is $2,000 computed using straight-line depreciation. Complete the necessary journal entry to bring the accumulated depreciation up-to-date by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answer 1

journal entry are given below

carrying value = $4000 and cash received is $2000

Step-by-step explanation:

given data

delivery van cost = $20,000

accumulated depreciation = $16,000

Annual depreciation = $2,000

solution

journal entry are

date title debit credit

December 29, 2019 Cash $2000

Accumulated depreciation $16000

Delivery van $20000

note that

here carrying value is = $20000 - $16000

carrying value = $4000

and cash received is $2000