Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on January 1, 2015, for $39,500. At acquisition, Swann had estimated that the truck would have an estimated life of 5 years and a residual value of $4,000. Swann uses the straight-line method of depreciation. At December 31, 2018, the truck had a book value of $11,100.

Required:

1.

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

a.	$11,025
b.	$7,525

2.

Assume that Swann uses IFRS and sold the truck for $11,025. In addition, Swann had previously recorded a revaluation surplus related to this machine of $5,000. What journal entries are required to record the sale?

CHART OF ACCOUNTS

Swann Company

General Ledger

	ASSETS
111	Cash
121	Accounts Receivable
141	Inventory
152	Prepaid Insurance
186	Trucks
198	Accumulated Depreciation

	LIABILITIES
211	Accounts Payable
231	Salaries Payable
250	Unearned Revenue
261	Income Taxes Payable

	EQUITY
311	Common Stock
331	Retained Earnings
335	Revaluation Surplus

	REVENUE
411	Sales Revenue
882	Gain on Disposal of Property, Plant, and Equipment

	EXPENSES
500	Cost of Goods Sold
511	Insurance Expense
512	Utilities Expense
521	Salaries Expense
531	Depreciation Expense
532	Bad Debt Expense
540	Interest Expense
559	Miscellaneous Expenses
892	Loss on Disposal of Property, Plant, and Equipment

GENERAL JOURNAL

Score: 38/75

1A)	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6

GENERAL JOURNAL

Score: 45/75

1B)	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6

2.Assume that Swann uses IFRS and sold the truck for $11,025. In addition, Swann had previously recorded a revaluation surplus related to this machine of $5,000.

1.	Depreciation expense of the delivery truck for 2019
2.	The sale of the truck, assuming it sold for $11,025
3.	Other adjustments related to removing the delivery truck from the books

GENERAL JOURNAL

Score: 38/100

2)	DATE	ACCOUNT TITLE	POST. REF.	DEBIT	CREDIT
1
2
3
4
5
6
7
8