30,000 of accumulated depreciation had been recorded was disposed of on July 1,

Question

30,000 of accumulated depreciation had been recorded was disposed of on July 1, the first day of the new fiscal year Journal form to record the disposal under each of the following assumptions: a. It was discarded as having no value. . Prepare entries in b. It was sold for $7,200 cash c: It was traded for a similar truck having a price of $52,000. An $8,000 trade-in was owed and the balance was paid in cash. (Follow the FASB or financial accounting rules.) all It was traded for a similar truck having a price of $52,000. A S12,000 trade-in was allowed and the balance was paid in cash. d. General Journal Page 1 Post. Ref Description Debit Credit Date

Explanation / Answer

Date Description Debit Credit a) Accumulated Depreciation- Truck $30,000 July 1 Loss on Disposal of Truck $10,000                Truck $40,000 b) Cash $7,200 July 1 Accumulated Depreciation- Truck $30,000 Loss on Disposal of Truck $2,800                 Truck $40,000 c) July 1 Truck $52,000 Accumulated Depreciation- Truck $30,000 Loss on Exchange of Truck $2,000                    Truck $40,000                   Cash $44,000 Cost of Truck Traded In $40,000 Less: Accumulated Depreciation -$30,000 Net Book Value $10,000 Trade in Value -$8,000 Loss on Exchange $2,000 d) July 1 Truck $52,000 Accumulated Depreciation- Truck $30,000                    Truck $40,000                    Cash $42,000 Cost of Truck Traded In $40,000 Less: Accumulated Depreciation -$30,000 Net Book Value $10,000 Trade in Value -$12,000 Gain on Exchange -$2,000

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