Mini Computers purchased a delivery truck 4 years ago for $30,000.
Currently the accumulated depreciation on the truck is $14,000.
Required:
Prepare the journal entry to show the sale of the truck, assuming the truck is sold for $18,000 on January 1, 2015.
Please add D after the account name you are debiting and a C after the account name you are crediting in a hyphenated fashion.
Make sure you provide the dollar amount after the appropriate account. You can type each transaction on one line.
For example, journalize the entry for the purchase of land for $10,000 cash on February 10th.
Example solution: February 10 Land-D 10,000 Cash-C 10,000
In the Books of Mini Computers
Journal Entries
| Journal entry | |||
|---|---|---|---|
| Date | Particulars | Debit | Credit |
| Cash (D) | $18,000 | ||
| Accumulated Depreciation - Truck (D) | $14,000 | ||
| Truck - Asset (C) | $30,000 | ||
| Gain on sale of truck (C) ($18,000+$14,000-$30,000) | $2,000 | ||
| (Being sale of truck recorded) | |||
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