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Prepare the required journal entry to record disposal of van

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Reference no: EM13496935

Assume that a company sold a delivery van that had been used in the business for three years. Records of the company related to the van reflect the following:

 

                                Delivery van cost                                        $42,500

                                Accumulated Depreciation                            25,200

 

Required:

  1. Prepare the required journal entry to record disposal of the van, assuming the following sales amounts for cash:
    1. $17,300
    2. $20,500
    3. $15,800
  2. Based on the situation above, explain the effects of the disposal of an asset on the company's financial statements. 

 

Reference no: EM13496935

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