Salva Pest Control disposed of four assets recently. Salva’s accounting records provided the following information about the assets at the time of their disposal:
The truck was sold for $2,450 cash, and the chemical testing apparatus was donated to the local high school. Because the pump was contaminated with pesticides, $500 in cash was paid to a chemical disposal company to decontaminate the pump and dispose of it safely. The furniture was taken to the local landfill.

1. Prepare a separate journal entry to record the disposition of each of these assets.
2. Explain how the disposals of the fixed assets would affect the current period financial statements.

  • CreatedSeptember 22, 2015
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