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.

Required:
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.

Transcribed Image Text:

Accumulated Asset Cost Depreciation 6,2004,800 17,500 Pump Truck Furniture Chemical testing apparatus 18,600 4,200 6,800 4,000