Disposal of Plant Asset

Canyon Company has a used delivery truck that originally cost $28,200. Straight-line depreciation on the truck has been recorded for three years, with a $3,000 expected salvage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of the third year. Four months into the fourth year, Canyon disposes of the truck.

Required

Prepare journal entries to record: a. Depreciation expense to the date of disposal. b. Sale of the truck for cash at its book value. c. Sale of the truck for $15,500 cash. d. Sale of the truck for $12,500 cash. e. Theft of the truck. Canyon carries no insurance for theft.

General Journal
Reference	Description	Debit	Credit
a.	Answer
Answer	Answer
	Answer
Answer	Answer
	To record depreciation expense for 4 months.
b.	Cash	Answer	Answer
	Answer
Answer	Answer
	Answer
Answer	Answer
	To record sale of truck.
c.	Cash	Answer	Answer
	Answer
Answer	Answer
	Truck	Answer	Answer
	Answer
Answer	Answer
	To record sale of truck.
d.	Cash	Answer	Answer
	Answer
Answer	Answer
	Accumulated Depreciation - Truck	Answer	Answer
	Answer
Answer	Answer
	To record sale of truck.
e.	Answer
Answer	Answer
	Accumulated Depreciation - Truck	Answer	Answer
	Answer
Answer	Answer
	To record theft of uninsured truck.