Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January 1. Perfect...
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Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January 1. Perfect had acquired the car 2 years earlier for $13,500. At acquisition, Perfect assumed that the car would have an estimated life of 3 years and a residual value of $3,000. Assume that Perfect had properly used the straight-line depreciation method in previous years. Required: Prepare the journal entry to record the sale of the car assuming the car sold for (a) $6,500 cash, (b) $4,000 cash, and (c) $7,100 cash. The company recorded the car as equipment. If an amount box does not require an entry, leave it blank. a. Cash Accumulated Depreciation Equipment b. Cash C. Accumulated Depreciation Loss on Disposal of Property, Plant, and Equipment Equipment Cash ✓ V Accumulated Depreciation ✓ Gain on Disposal of Property Plant and Equipment Equipment Check My Wadk 000 0000 0000 0007 ✓ ✓ ✓ 2,500✔ 7,100 ✓ 7,000✔ 13,500 13,500 13,500 X 600 X Disposal of Fixed Asset Perfect Auto Rentals sold one of its cars on January 1. Perfect had acquired the car 2 years earlier for $13,500. At acquisition, Perfect assumed that the car would have an estimated life of 3 years and a residual value of $3,000. Assume that Perfect had properly used the straight-line depreciation method in previous years. Required: Prepare the journal entry to record the sale of the car assuming the car sold for (a) $6,500 cash, (b) $4,000 cash, and (c) $7,100 cash. The company recorded the car as equipment. If an amount box does not require an entry, leave it blank. a. Cash Accumulated Depreciation Equipment b. Cash C. Accumulated Depreciation Loss on Disposal of Property, Plant, and Equipment Equipment Cash ✓ V Accumulated Depreciation ✓ Gain on Disposal of Property Plant and Equipment Equipment Check My Wadk 000 0000 0000 0007 ✓ ✓ ✓ 2,500✔ 7,100 ✓ 7,000✔ 13,500 13,500 13,500 X 600 X
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Journal entry In the books of Auto Rental Sno Particulars Dr Cr a Cash ac Dr 6500 Accumulated De... View the full answer
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
Posted Date:
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