On April 1 of the Current Year,a Company Disposed of a Truck

question 94

Essay

On April 1 of the current year,a company disposed of a truck that had cost $20,000.The truck had a salvage value of $2,000,and a useful life of 5 years.The accounting records showed accumulated depreciation for this truck of $8,100 as of April 1 of the current year.The asset was discarded after an accident,and $10,500 cash was received from an insurance claim.Prepare the journal entry to record the disposal of the truck.

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Definitions:

Reasoning Speed

The pace at which an individual can process information to solve problems or make decisions.

Abstract Concepts

Mental representations of ideas or principles that do not have a physical presence but are understood through thought and knowledge.

Spatial Concepts

The understanding and cognitive processing of how objects or features are located in space relative to one another.

Visual Relationships

The way visual elements are perceived in relation to each other and the overall composition in a visual field.