On July 1, 2020, Mollys Greenhouse purchased a new delivery truck for $107,000. She paid a $20,000 cash and signed a promissory note for the remainder. Molly estimates that the delivery truck will have a five-year useful life, or 200,000 kilometres and a residual value of $7,000. Mollys Greenhouse has a December 31 year end.

Calculate the gain or loss on disposal for the following three independent situations:

Molly sold the truck for $39,450 on January 1, 2024. By using straight-line method the carrying amount is $37,000.

Gain(Loss) on disposal

$

List of Accounts

Molly sold the truck for $31,500 on January 1, 2024. By using straight-line method the carrying amount is $37,000.

Gain(Loss) on disposal

$

List of Accounts

Molly sold the truck for $25,600 on July 1, 2024. Molly used the straight-line method.

(Loss)Gain on disposal

$

List of Accounts

Molly sold the truck for $25,600 on July 1, 2024.

Using straight line method, prepare the journal entries for the above situation. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
July 1, 2024
	(To record depreciation expense on vehicle)
July 1, 2024
	(To record sale of vehicle)