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 Accumulated DepreciationCashDepreciation Expense EquipmentEquipmentLoss on Disposal of Property, Plant, and Equipment Select Select Accumulated DepreciationDepreciation Expense EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select Accumulated DepreciationCashDepreciation Expense EquipmentEquipmentLoss on Disposal of Property, Plant, and Equipment Select Select b Accounts PayableCashDepreciation Expense EquipmentEquipmentGain on Disposal of Property, Plant, and Equipment Select Select Accounts PayableAccumulated DepreciationDepreciation Expense EquipmentEquipmentSupplies Select Select Accounts PayableDepreciation ExpenseEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select Accumulated DepreciationDepreciation Expense EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select c CashDepreciation Expense EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select Accumulated DepreciationDepreciation Expense EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select Accumulated DepreciationCashDepreciation Expense EquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select Accumulated DepreciationCashEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment Select Select

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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.

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.	Accumulated DepreciationCashDepreciation Expense-EquipmentEquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accumulated DepreciationDepreciation Expense-EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accumulated DepreciationCashDepreciation Expense-EquipmentEquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
b.	Accounts PayableCashDepreciation Expense-EquipmentEquipmentGain on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accounts PayableAccumulated DepreciationDepreciation Expense-EquipmentEquipmentSupplies	- Select -	- Select -
	Accounts PayableDepreciation ExpenseEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accumulated DepreciationDepreciation Expense-EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
c.	CashDepreciation Expense-EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accumulated DepreciationDepreciation Expense-EquipmentEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accumulated DepreciationCashDepreciation Expense-EquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -
	Accumulated DepreciationCashEquipmentGain on Disposal of Property, Plant, and EquipmentLoss on Disposal of Property, Plant, and Equipment	- Select -	- Select -