Asked by Jacqueline Camacho on Apr 29, 2024
Verified
Hello Online disposed of a van that cost $26,000 with accumulated depreciation of $19,000. The journal entry would include a:
A) credit to Van $26,000.
B) debit to Accumulated Depreciation $19,000.
C) debit to Loss on Disposal of Plant Asset $7,000.
D) All of these answers are correct.
Accumulated Depreciation
The cumulative sum of depreciation costs allocated to an asset from the time it was first used.
Disposal
The act of getting rid of an asset through sale, exchange, retirement, or destruction, typically reflected in financial statements.
Plant Asset
Long-lived, tangible assets used in the operations of a business, typically including buildings, machinery, and equipment.
- Learn the journal entry preparation for disposal of fixed assets and understanding the effect on financial statements.
Verified Answer
Learning Objectives
- Learn the journal entry preparation for disposal of fixed assets and understanding the effect on financial statements.
Related questions
Journalize the Following Transactions for Pets R Us ...
A Computer Server System, Which Had Cost $250,000 and Had ...
Trapper Company's Unadjusted and Adjusted Trial Balances on December 31 ...
Record the December 31 Adjusting Entries for the Following Transactions ...
The Following Unadjusted and Adjusted Trial Balances Are from the ...