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Cheng Company traded a used truck for a new truck. The used truck cost $30,000...

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Question

Accounting

Cheng Company traded a used truck for a new truck. The used truck cost $30,000 and has accumulated depreciation of $27,000. The new truck is worth $37,000. Cheng also made a cash payment of $36,000. Prepare Chengs entry to record the exchange. (The exchange lacks commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Account Titles and Explanation

Debit

Credit

image Trucks (used) Cash Trucks (new) Accumulated Depreciation-Trucks Loss on Disposal of Trucks

image

image

image Loss on Disposal of Trucks Trucks (used) Cash Trucks (new) Accumulated Depreciation-Trucks

image

image

image Accumulated Depreciation-Trucks Loss on Disposal of Trucks Trucks (used) Cash Trucks (new)

image

image

image Cash Loss on Disposal of Trucks Accumulated Depreciation-Trucks Trucks (used) Trucks (new)

image

image

image Trucks (used) Cash Trucks (new) Accumulated Depreciation-Trucks Loss on Disposal of Trucks

image

image

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