Business, 04.04.2020 04:34 zahwaahmaf

MoveIt Corporation 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 MoveIt sold a delivery truck for $26,000. MoveIt had originally purchased the truck for $43,000 and had recorded depreciation for three years. Prepare the journal entry to record the disposal of the truck, assuming that Accumulated Depreciation was (a) $17,000, (b) $12,000, and (c) $19,000. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

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Answer from: hellicuh

1. No loss or No Gain

2. Loss = $5,000

3. Gain = $2,000

Explanation:

Requirement 1

If the accumulated depreciation of the machine was $17,000, the journal entry to record the transaction of disposal of machine will be as follows:

December 31 Cash Debit $26,000

Accumulated depreciation Debit $17,000

Machine Credit $43,000

Calculation:

Book value of the machine = Purchase price - Accumulated depreciation = $(43,000 - 17,000) = $26,000

We know, Gain (Loss) on sale of machine = Book value of the machine - Sale price = $(26,000 - 26,000) = $0. As the book value and the disposal value are same, there is no loss and no gain.

Requirement 2

If the accumulated depreciation of the machine was $12,000, the journal entry to record the transaction of disposal of machine will be as follows:

December 31 Cash Debit $26,000

Accumulated depreciation Debit $12,000

Loss on sale of equipment Debit $5,000

Machine Credit $43,000

Calculation:

Book value of the machine = Purchase price - Accumulated depreciation = $(43,000 - 12,000) = $31,000

We know, Loss on sale of machine = Sale price - Book value of the machine = $(31,000 - 26,000) = $5,000. Loss is a debit as it shows as the expense.

Requirement 3

If the accumulated depreciation of the machine was $19,000, the journal entry to record the transaction of disposal of machine will be as follows:

December 31 Cash Debit $26,000

Accumulated depreciation Debit $19,000

Gain on sale of machine Credit $2,000

Machine Credit $43,000

Calculation:

Book value of the machine = Purchase price - Accumulated depreciation = $(43,000 - 19,000) = $24,000

We know, Gain on sale of machine = Sale price - Book value of the machine = $(26,000 - 24,000) = $2,000. Gain is a credit as it shows as the income.

Answer from: Quest

answer; ///after donning a gown, mask and eyewear;

Answer from: Quest

administrative jobs normally have someone answering phone calls and scheduling appointments, filing patient or customer information, making sure the front of the office looks nice to those who enter the building. administrative jobs can also include making sure the manager has everything they need for meetings, making delivers and much more. administrative jobs are important to most businesses as are customer service focused as they are often one of the first impressions a consumer sees of a business.

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MoveIt Corporation is the world’s leading express-distribution company. In addition to its 643 aircr...

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