Exercise 7-58 (Algorithmic)

Disposal of Fixed Asset

Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, 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 has recorded straight-line depreciation expense for 2017 and 2018.

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) $6,900 cash. The company recorded the car as equipment. If no entry is required, leave the answer boxes blank.

a.

Record sale of car

b.

Record sale of car

c.

Record sale of car

Safari File Edit View History Bookmarks Window Help V2.cengagenow.co >> os Sure University : ACC 131001 SU2020 - Fina. CengageNOWV2 Online teaching and learning C Chapter 07 Homework (Application) Perfect Auto Rentals sold one of its cars on January 1, 2019. Perfect had acquired the car on January 1, 2017, 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 has recorded straight-line depreciation expense for 2017 and 2018. 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) $6,900 cash. The company recorded the car as equipment. If no entry is required, leave the answer boxes blank LAND Record sale of car Record sale of car RI Check My Work more Check My Work uses remaining