Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on January 1, 2012, for $45,500. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $3,000. At December 31, 2015, the truck had a book value of $11,500.

Required:

1.

Prepare any necessary journal entries to record the sale of the truck, assuming it sold for:

a.	$11,125
b.	$7,525

2.

How should the gain or loss on disposal be reported on the income statement?

3.

Assume that Swann uses IFRS and sold the truck for $11,125. In addition, Swann had previously recorded a revaluation surplus related to this machine of $4,500. What journal entries are required to record the sale?

X

General Journal

Prepare the necessary journal entries on April 1, 2016 to record:

1.	depreciation expense of the delivery truck for 2016
2.	the sale of the truck, assuming it sold for $11,125

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GENERAL JOURNAL

	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3