Question

Speedy Package is California's largest express transportation company. In addition to the largest fleet of all-cargo aircraft in California, the company has more than 655 aircraft and 57,000 vehicles and trailers that pick up and deliver packages. Assume that Speedy Package sold a delivery truck that had been used in the business for three years. The records of the company reflected the following:______.

Delivery truck cost Accumulated depreciation $ 55,000 39,600
Required:
Prepare the journal entry for the disposal of the truck, assuming that the truck sold for: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the disposal of the truck, assuming the truck was sold for $15,400 cash. Record the disposal of the truck, assuming that the truck was sold for $16,500 cash. Record the disposal of the truck, assuming the truck was sold for $12,700 cash.

Answer 1

Date General Journal Debit Credit

Cash $15,400

Accumulated Depreciation $39,600

Equipment - Delivery truck $55,000

(Assuming the truck was sold for $15,400 cash)

Cash $16,500

Accumulated Depreciation $39,600

Gain on sale $1,100

Equipment - Delivery truck $55,000

(Assuming the truck was sold for $16,500 cash)

Cash $12,700

Accumulated Depreciation $39,600

Loss on sale $2,700

Equipment - Delivery truck $55,000

(Assuming the truck was sold for $12,700 cash)