Question
In: Accounting
A delivery truck was acquired on January 1, 2020, at a cost of $40,600. The truck...
A delivery truck was acquired on January 1, 2020, at a cost of
$40,600. The truck was originally estimated to have a salvage value
of $16,800 and an estimated life of 5 years. Depreciation has been
recorded through December 31, 2021, using the straight-line method.
On January 1, 2022, the truck’s engine was rebuilt at a cost of
$5,000 the estimated salvage value was revised to $15,600 and the
useful life was revised to a total of 6 years.
Prepare the journal entry to record depreciation expense for 2022.
(Credit account titles are automatically indented when
the amount is entered. Do not indent
manually.)
| Depreciation expense for 2022 | $enter the Depreciation expense for 2017 in dollars |
Adjusting journal entry at 12/31/22:
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
Dec. 31 |
|||
Solutions
ekkarill92 answered 1 year agoRelated Solutions
A delivery truck was acquired on January 1, 2017, at a cost of $65,000. The delivery...
A delivery truck was
acquired on January 1, 2017, at a cost of $65,000. The delivery
truck was originally estimated to have a residual value of $5,000
and an estimated life of five years. The truck is expected to be
driven a total of 200,000 kilometers during its life, distributed
as:
Year
Number of
Components
37,000
42,000
45,000
40,000
36,000
2017
2018
2019
2020
2021
Using the
straight-line, units-of-production, and double-diminishing balance
methods, answer the following questions.
The 2017 depreciation...
Swifty Company purchased a delivery truck for $26,000 on January 1, 2020. The truck has an...
Swifty Company purchased a delivery truck for $26,000 on January
1, 2020. The truck has an expected salvage value of $1,000, and is
expected to be driven 100,000 miles over its estimated useful life
of 10 years. Actual miles driven were 12,800 in 2020 and 12,000 in
2021.
Calculate depreciation expense per mile under units-of-activity
method. (Round answer to 2 decimal places, e.g.
0.50.)
Depreciation expense
$
per mile
eTextbook and Media
List of Accounts
Compute depreciation expense for 2020...
Hi , I need with this question. A delivery truck was acquired on January 1, 2017,...
Hi , I need with this question.
A delivery truck was
acquired on January 1, 2017, at a cost of $65,000. The delivery
truck was originally estimated to have a residual value of $5,000
and an estimated life of five years. The truck is expected to be
driven a total of 200,000 kilometers during its life, distributed
as:
Year
Number of
Components 37,000
42,000
45,000
40,000
36,000
2017
2018
2019
2020
2021
Using the
straight-line, units-of-production, and double-diminishing balance
methods,...
Daniel’s Delivery Company and Sandra’s Express Delivery exchanged delivery trucks on January 1, 2020. Daniel’s truck...
Daniel’s Delivery Company and Sandra’s Express Delivery
exchanged delivery trucks on January 1, 2020. Daniel’s truck cost
18,000. It has accumulated depreciation of $15,000 and a fair
market value of $5,000. Sandra’s truck cost $10,000. It has
accumulated depreciation of $8,000 and a fair market value of
$5,000. Daniel’s Delivery Company paid Sandra’s Express Delivery
$2,000 for this transaction. The transaction has commercial
substance.
Journalize the exchange for Daniel’s Delivery Company
Journalize the exchange for Sandra’s Express Delivery
ABC Delivery Company purchased a new delivery truck on January 1 with an original cost of...
ABC Delivery Company purchased a new delivery truck on January 1
with an original cost of $50,000. The company estimates it will use
the truck for 5 years and drive a total of 100,000 miles. It plans
to sell the truck at the end of the five years for $5,000. During
the first year, the truck was driven 15,000 miles. What is the
depreciation for the first year using the
DoubleDeclining Balance
method?
$10,000
$18,000
$7,500
$20,000
$6,750
$9,000
On January 1, 2018, On Time Delivery Service purchased a truck at a cost of $75,000....
On
January
1,
2018,
On Time
Delivery Service purchased a truck at a cost of
$75,000.
Before placing the truck in service,
On Time
spent
$2,200
painting it,
$1,700
replacing tires, and
$9,100
overhauling the engine. The truck should remain in service for
five years and have a residual value of
$10,000.
The truck's annual mileage is expected to be
27,000
miles in each of the first four years and
12,000
miles in the fifth
year—120,000
miles in total. In...
Lake Company bought a used delivery truck on January 1, 2017, for $20,000. The delivery truck...
Lake Company bought a used delivery truck on January 1, 2017,
for $20,000. The delivery truck was expected to remain in service 4
years (50,000 miles). Lake's accountant estimated that the truck’s
residual value would be $2,000 at the end of its useful life. The
truck traveled 14,000 miles the first year and 18,000 miles the
second year. Calculate depreciation expense for the truck for 2017
and 2018 using the
• Straight-line method.
• Double-declining balance method
• Units of...
Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on...
Swann Company sold a delivery truck on April 1, 2019. Swann had
acquired the truck on January 1, 2015, for $39,500. At acquisition,
Swann had estimated that the truck would have an estimated life of
5 years and a residual value of $3,000. Swann uses the
straight-line method of depreciation. At December 31, 2018, the
truck had a book value of $10,300.
Required:
1.
Prepare any necessary journal entries to record the sale of the
truck, assuming it sold for:...
Swann Company sold a delivery truck on April 1, 2019. Swann had acquired the truck on...
Swann Company sold a delivery truck on April 1, 2019. Swann had
acquired the truck on January 1, 2015, for $39,500. At acquisition,
Swann had estimated that the truck would have an estimated life of
5 years and a residual value of $4,000. Swann uses the
straight-line method of depreciation. At December 31, 2018, the
truck had a book value of $11,100.
Required:
1.
Prepare any necessary journal entries to record the sale of the
truck, assuming it sold for:...
Swann Company sold a delivery truck on April 1, 2016. Swann had acquired the truck on...
Swann Company sold a delivery truck on April 1, 2016. Swann had
acquired the truck on January 1, 2012, for $39,500. At acquisition,
Swann had estimated that the truck would have an estimated life of
5 years and a residual value of $4,000. At December 31, 2015, the
truck had a book value of $11,100.
Required:
1.
Prepare any necessary journal
entries to record the sale of the truck, assuming it sold for:
a.
$11,025
b.
$7,525
2.
How should...
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