On January 2,2009,a company purchased a delivery truck for $45,000 cash.The truck had an estimated useful life of seven years and an estimated salvage value of $3,000.The straight-line method of depreciation was used.Prepare the journal entries to record the updating of depreciation and the disposition of the truck on September 1,2013,under each of the following assumptions:
a.The truck and $45,000 cash were given in exchange for a new delivery truck that had a cash price of $60,000.
b.The truck and $40,000 cash were exchanged for a new delivery truck that had a cash price of $60,000.

Question

Quizplus · Accepted Answer

The Answer of On January 2,2009,a company purchased a delivery truck for $45,000 cash.The truck had an estimated useful life of seven years and an estimated salvage value of $3,000.The straight-line method of depreciation was used.Prepare the journal entries to record the updating of depreciation and the disposition of the truck on September 1,2013,under each of the following assumptions:
a.The truck and $45,000 cash were given in exchange for a new delivery truck that had a cash price of $60,000.
b.The truck and $40,000 cash were exchanged for a new delivery truck that had a cash price of $60,000.

On January 2,2009,a Company Purchased a Delivery Truck for $45,000