In october 2014 the company bought a new delivery vehicle


Question - In October 2014, the company bought a new delivery vehicle. The cost excluding non-recoverable taxes was $18,500. The vehicle is expected to have a five-year life and a $2,000 salvage value. On December 31, 2014, the company sold the old delivery vehicle for $800; however, the journal entry to account for the sale of the vehicle has not been booked yet. On December 31, 2014, the cash from the sale was deposited into the company's bank account.

The transaction was journalized as follows:

Dr Cash 800

Cr Gain on sale of equipment 800

What adjusting journal entry is required?

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Accounting Basics: In october 2014 the company bought a new delivery vehicle
Reference No:- TGS02813921

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