Required informationE9-11 (Algo) Demonstrating the Effect of Book Value on Reporting an Asset Disposal [LO 9-5][The following information applies to the questions displayed below.]OnTime Packaging is the world's leading express-distribution company. In addition to its 643 aircraft, the company hasmore than 57,000 ground vehicles that pick up and deliver packages. Assume that OnTime sold a delivery truck for$22,000. OnTime had originally purchased the vehicle and recorded it in the Truck account for $37,000 and had recordeddepreciation for three years.E9-11 (Algo) Part 44. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $15,000, (b)$13,000, and (c) $21,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first accountfield.)NoTransactionGeneral Journal1CashTruckAccumulated Depreciation-TruckDebitCredit22,00037,00015,0002bCash22,000Accumulated Depreciation-TruckTruck13,00037,0003сCashAccumulated Depreciation-TruckTruck*Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted.22,00021,00037,000

Step 1:Depreciation expense is the reduce in value of assets due to the use of assets.Book value of…

Answered: Required information E9-11 (Algo)…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information [The following information applies to the questions displayed below.] Moab Inc. manufactures and distributes high-tech biking gadgets. It has decided to streamline some of its operations so that it will be able to be more productive and efficient. Because of this decision it has entered into several transactions during the year. (Do not round intermediate computations.) a. Moab Inc. sold a machine that it used to make computerized gadgets for $27,300 cash. It originally bought the machine for $19,200 three years ago and has taken $8000 in depreciation. b. Moab Inc. held stock in ABC Corp., which had a value of $12,000 at the beginning of the year. That same stock had a value of $15,230 at the end of the year. c. Moab Inc. sold some of its inventory for $7,000 cash. This inventory had a basis of $5,000. d. Moab Inc. disposed of an office building with a fair market value of $75,000 for another office building with a fair market value of $55,000 and $20,000 in cash.…
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This question relate with MFRS 116 (Property, Plant and Equipment)
! Required information [The following information applies to the questions displayed below.] VQT Companies is the world's leading express-distribution company. In addition to its 643 aircraft, the company has more than 57,000 ground vehicles that pick up and deliver packages. Assume that VQT sold a delivery truck for $29,000. VQT had originally purchased the vehicle and recorded it in the Truck account for $49,000 and had recorded depreciation for three years. 4. Prepare the journal entry to record the disposal of the truck, assuming Accumulated Depreciation--Truck was (a) $20,000, (b) $17,000, and (c) $25,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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