Question
On July 1 , 2023 , Waterway's Greenhouse purchased a new delivery truck for $ 128,000 . She paid $ 20,000 cash and signed a
On July 1 , 2023 , Waterway's Greenhouse purchased a new delivery truck for $ 128,000 . She paid $ 20,000 cash and signed a promissory note for the remainder . Waterway estimates that the delivery truck will have a five - year useful life , or 200,000 kilometres and a residual value of $ 8,000 . Waterway's Greenhouse has a December 31 year end . Calculate the gain or loss on disposal for the following three independent situations : Waterway sold the truck for $ 46,200 on January 1 , 2027. Use the straight - line method . on disposal $
Waterway sold the truck for $37,250 on January 1, 2027. Use the straight-line method.
on disposal
$
Waterway sold the truck for $31,000 on July 1, 2027. Use the straight-line method.
on disposal $
Waterway sold the truck for $31,000 on July 1, 2027,
Using the 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 O for the
amounts. List all debit entries before credit entries)
Credit
Debit
Date
Account Titles
July 1,
2027
(To record depreciation expense on vehicle)
July 1. 2027
(To record sale of vehicle)
OA
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