Question
In: Accounting
2016 Jan. 1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck...
2016 Jan. 1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,450 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. 2017 Dec. 31 Due to new information obtained earlier in the year, the truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,550. Recorded annual straight-line depreciation on the truck. 2018 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,400 cash.
Required: 1-a. Calculate depreciation for the year 2017.
1-b. Calculate book value and gain (loss) for sale of Truck in December 2018.
1-c. Prepare journal entries to record these transactions and events.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
2016 Jan. 1 Paid $20,515 cash plus $1,935 in sales tax for a new delivery truck...
2016
Jan.
1
Paid $20,515 cash plus $1,935 in
sales tax for a new delivery truck estimated to have a five-year
life and a $2,150 salvage value. Delivery truck costs are recorded
in the Trucks account.
Dec.
31
Recorded annual straight-line
depreciation on the truck.
2017
Dec.
31
Due to new information obtained
earlier in the year, the truck’s estimated useful life was changed
from five to four years, and the estimated salvage value was
increased to $2,700. Recorded annual...
5) 2016 Jan. 1 Paid $23,515 cash plus $1,485 in sales tax for a new delivery...
5) 2016
Jan.
1
Paid $23,515 cash plus $1,485 in
sales tax for a new delivery truck estimated to have a five-year
life and a $2,000 salvage value. Delivery truck costs are recorded
in the Trucks account.
Dec.
31
Recorded annual straight-line
depreciation on the truck.
2017
Dec.
31
Due to new information obtained
earlier in the year, the truck’s estimated useful life was changed
from five to four years, and the estimated salvage value was
increased to $2,700. Recorded...
Year 1 Jan. 8. Purchased a used delivery truck for $61,440, paying cash. Mar. 7. Paid...
Year 1
Jan. 8.
Purchased a used delivery truck for $61,440, paying cash.
Mar. 7.
Paid garage $240 for changing the oil, replacing the oil
filter, and tuning the engine on the delivery truck.
Dec. 31.
Recorded depreciation on the truck for the fiscal year. The
estimated useful life of the truck is 8 years, with a residual
value of $12,900 for the truck.
Year 2
Jan. 9.
Purchased a new truck for $70,560, paying cash.
Feb. 28.
Paid garage...
Storm Delivery Company purchased a new delivery truck for $53,400 on April 1, 2016. The truck...
Storm Delivery Company purchased a new delivery truck for
$53,400 on April 1, 2016. The truck is expected to have a service
life of 5 years or 150,000 miles and a residual value of $4,320.
The truck was driven 8,200 miles in 2016 and 11,800 miles in 2017.
Storm computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places.
Round your final answers...
Bean Delivery Company purchased a new delivery truck for $58,200 on April 1, 2016. The truck...
Bean Delivery Company purchased a new delivery truck for $58,200
on April 1, 2016. The truck is expected to have a service life of 5
years or 122,400 miles and a residual value of $4,800. The truck
was driven 9,000 miles in 2016 and 10,700 miles in 2017. Bean
computes depreciation to the nearest whole month.
Required:
Compute depreciation expense for 2016 and 2017 using the
For interim computations, carry amounts out to two decimal places.
Round your final answer...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events
involving its delivery trucks.
2016
Jan.
1
Paid $20,515 cash plus $1,635 in sales tax for a new delivery
truck estimated to have a five-year life and a $2,150 salvage
value. Delivery truck costs are recorded in the Trucks
account.
Dec.
31
Recorded annual straight-line depreciation on the truck.
2017
Dec.
31
Due to new information obtained earlier in the year, the
truck’s estimated useful life was changed from five to four...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events
involving its delivery trucks.
2016
Jan.
1
Paid $23,515 cash plus $1,785 in
sales tax for a new delivery truck estimated to have a five-year
life and a $2,150 salvage value. Delivery truck costs are recorded
in the Trucks account.
Dec.
31
Recorded annual straight-line
depreciation on the truck.
2017
Dec.
31
Due to new information obtained
earlier in the year, the truck’s estimated useful life was changed
from five to four...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events
involving its delivery trucks.
2016
Jan.
1
Paid $23,515 cash plus $1,485 in
sales tax for a new delivery truck estimated to have a five-year
life and a $2,300 salvage value. Delivery truck costs are recorded
in the Trucks account.
Dec.
31
Recorded annual straight-line
depreciation on the truck.
2017
Dec.
31
Due to new information obtained
earlier in the year, the truck’s estimated useful life was changed
from five to four...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events
involving its delivery trucks.
2016
Jan.
1
Paid $25,015 cash
plus $1,635 in sales tax for a new delivery truck estimated to have
a five-year life and a $2,300 salvage value. Delivery truck costs
are recorded in the Trucks account.
Dec.
31
Recorded annual
straight-line depreciation on the truck.
2017
Dec.
31
Due to new
information obtained earlier in the year, the truck’s estimated
useful life was changed from five to four...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events
involving its delivery trucks. 2016 Jan. 1 Paid $25,015 cash plus
$1,785 in sales tax for a new delivery truck estimated to have a
five-year life and a $2,150 salvage value. Delivery truck costs are
recorded in the Trucks account. Dec. 31 Recorded annual
straight-line depreciation on the truck. 2017 Dec. 31 Due to new
information obtained earlier in the year, the truck’s estimated
useful life was changed from five to four...
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