On January 1, 2022, Skyline Limousine Co. purchased a limousine at an acquisition cost of ($ 28,000).
Question:
On January 1, 2022, Skyline Limousine Co. purchased a limousine at an acquisition cost of \(\$ 28,000\). Skyline depreciated the vehicle by the straight-line method using a 4-year service life and a \(\$ 4,000\) salvage value. The company's fiscal year ends on December 31 .
Instructions
Prepare the journal entry or entries to record the disposal of the limousine, assuming that it was:
a. Retired and scrapped with no salvage value on January 1, 2026 .
b. Sold for \(\$ 5,000\) on July \(1,2025\).
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
Question Posted: