Question
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
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:
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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? |
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GENERAL JOURNAL
Score: 38/75
1A) | DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT |
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GENERAL JOURNAL
Score: 45/75
1B) | DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT |
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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 |
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