A truck costing $12,000, which has Accumulated Depreciation of $9,000, was sold for $2,000 cash. Theentry to record this event would include a:gain of $1,000.credit to the Vehicles account for $3,000.loss of $1,000.credit to Accumulated Depreciation for $9,000.

The book value of an asset is calculated by subtracting the accumulated depreciation from the…

Answered: A truck costing $12,000, which has…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A business purchased a motor car on 1 July 20X3 for $20,000. It is to be depreciated at 20 per cent per year on the straight line basis, assuming a residual value at the end of five years of $4,000, with a proportionate depreciation charge in the years of purchase and disposal. The $20,000 cost was correctly entered in the cash book but posted to the debit of the motor vehicles repairs account. How will the business profit for the year ended 31 December 20X3 be affected by the error?
Good Dairy sold a delivery truck for cash of $6,400. The original cost of the truck was $26,000, and a loss of $4,000 was recognized on the sale. The accumulated depreciation at the date of sale must have been: A . $15,600. B. $12,400. C. $8,400. D. $19,600.
On January 1, 20x0, a company purchased a delivery truck for $30,000. They estimated the useful life of the truck to be 6 years, and the salvage value to be $6,000. On July 1, 20x5, they sold the truck for $7,400. Assuming the company uses straight line depreciation and records depreciation expense monthly, calculate the gain or loss associated with selling the truck.
A machine was purchased for $54,000 and it was estimated to have a $9,000 salvage value at the end of its useful life. A monthly depreciation expense of $600 was recorded using the straight-line method. The annual depreciation rate is a. 12.8% O b. 20% C. 16% O d. 1.6% The interest charged on a $300,000 note payable, at the rate of 6%, on a 90-day note would be
computer equipmenr was purchased 5 years ago for 170,000 with an estimated life of 8 years and a residual value of 10,000. the company used straigh line depreciaton. a. compute the balance of accumlated depreciationas of the end of 5 years. b.if the equipment is 45,000 cash at the end of 5 years. Journalize the sale of the equipment.
What is the depreciation rate for this accounting question?
A truck was purchased via a bank loan for a cost of $75,000 with an estimated life of 10 years and a residual value of $1,000.Prepare the journal entries to record the purchase of the vehicle andprepare a journal entry for 1 month of depreciation
22 )
UCF Diner bought a delivery truck on 1/1 at a cost of $40,000, an estimated salvage (residual) value of $8,000, and an estimated useful life of 5 years. The truck is being depreciated on a straight-line basis. At the end of the first year (12/31), what amount will be reported for depreciation expense? Fill in the blank with your calculated number. DO NOT include commas, $ signs, period, decimal points, etc., just enter the raw number. Webcourses will add commas to your answer automatically. For example, if you calculated the answer to be $24,123, you would only input: 24123 ASUS f4 E3 f5 f6 f7 f8 f9 f10 f11 团 4. 5 7 8 Y U 因 96 图立 R 图 %24
Beta had cash sales of $75,000 and credit sales of $65,000. Beta's operating expenses (not including depreciation) were $90,000, of which $20,000 cash was paid. In addition, Beta purchased a truck on the first day of the current year for $30,000 cash that was expected to have a useful life of 5 years and no salvage value (straight-line depreciation). What was Beta's accrual basis and cash basis net income? (Ignore income taxes.)
Phillips corporation purchased a truck that cost $70,000. The company expected to drive the truck 100,00 miles. the truck had an estimated salvage value of $10,000. Of the truck is driven 14,000 miles in the current accounting period. with of the following amounts should be recognized as depreciation expense
A truck that cost R.O.42,000 and on which R.O0.35,000 of accumulated depreciation has been recorded was disposed of for R.O.3,500 cash. The entry to record this event would include a

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

A truck costing $12,000, which has Accumulated Depreciation of $9,000, was sold for $2,000 cash. The entry to record this event would include a: gain of $1,000. credit to the Vehicles account for $3,000. loss of $1,000. credit to Accumulated Depreciation for $9,000.