On January​ 1,2011​, Pizza Notra purchased a van for $45,000

Record a sale in journal entry – The depreciation method used was​straight-line

On January​ 1,2011​, Pizza Notra purchased a van for $45,000. Red Rock expects the van to have a useful life of 5 years and a residual value of $5,500.

The depreciation method used was​straight-line. On December​ 31,2014​, the van was sold for $15,000 cash.

1. What was the carrying amount of the van at the date of​ sale?
2. Record the sale of the van on December​ 31,2014. in journal entry.

Here’s the SOLUTION

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