Gan Assume that, when the delivery truck was sold on January 1, the accountant only recorded a debit to Cash and a credit to Gain onDisposal. Because of this, also assume that the accountant recorded depreciation on this asset for 2024. What accounts are nowoverstated or understated because of these errors?Gain on DisposalAccumulated Depreciation-VehiclesVehiclesDepreciation ExpenseLoss on Disposal00000 Presented here are selected transactions for Cullumber Limited for 2024, Cullumber uses straight-line depreciation and recordsadjusting entries annually.Jan.1 Sold a delivery truck for $19,190 cash. The truck cost $67,530 when it was purchased on January 1, 2021, and wasdepreciated based on a four-year useful life with a $6,290 residual value.Sept. 1Dec. 30Sold computers that were purchased on January 1, 2022. They cost $11,628 and had a useful life of three yearswith no residual value. The computers were sold for $540 cash.Retired equipment that was purchased on January 1, 2015. The equipment cost $146,400 and had a useful life of10 years with no residual value. No proceeds were received.

Depreciation under Straight line method =

Assume that, when the delivery truck was sold on January 1, the accountant only recorded a debit to Cash and a credit to Gain on Disposal. Because of this, also assume that the accountant recorded depreciation on this asset for 2024. What accounts are now overstated or understated because of these errors? Gain on Disposal Accumulated Depreciation-Vehicles Vehicles Depreciation Expense Loss on Disposal 00000

Assume that, when the delivery truck was sold on January 1, the accountant only recorded a debit to Cash and a credit to Gain on Disposal. Because of this, also assume that the accountant recorded depreciation on this asset for 2024. What accounts are now overstated or understated because of these errors? Gain on Disposal Accumulated Depreciation-Vehicles Vehicles Depreciation Expense Loss on Disposal 00000

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 2AP

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