Prepare journal entries to update depreciation on truck

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Reference no: EM13863713

On 2009 August 31, Hutch Company sold a truck for USD 6,900 cash. The truck was acquired on 2006 January 1, at a cost of USD 17,400. Depreciation of USD 10,800 on the truck has been recorded through 2008 December 31, using the straight-line method, four-year expected useful life, and an expected salvage value of USD 3,000.

Prepare the journal entries to update the depreciation on the truck on 2009 August 31, and to record the sale of the truck.

Reference no: EM13863713

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