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Compute Straight Line Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value, 5...

Compute Straight Line Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value, 5 years useful life

Depreciation Calculation: Depre. Exp. = cost – salvage value* (time in service)

useful life

2018 Depreciation: $20,000-2000*(6/12) = $1,800

5 years

2019 Depreciation:

2020 Depreciation:

2021 Depreciation:

2022 Depreciation:

2023 Depreciation:

The journal entry to record the Depreciation Expense for Year 1 is:

Date	Accounts	Debit	Credit
12/31/18	Depreciation Expense - Truck	$1,800
	Accumulated Deprec. - Truck		$1,800

The journal entry to record the Depreciation Expense for Year 2 is:

Date	Accounts	Debit	Credit
12/31/19

The journal entry to record the Depreciation Expense for Year 3 is:

Date	Accounts	Debit	Credit
12/31/20

The journal entry to record the Depreciation Expense for Year 4 is:

Date	Accounts	Debit	Credit
12/31/21

The journal entry to record the Depreciation Expense for Year 5 is:

Date	Accounts	Debit	Credit
12/31/22

The journal entry to record the Depreciation Expense for the last year is:

Date	Accounts	Debit	Credit
12/31/23

Compute Double Declining Depreciation for the Truck: Purchased July 1, $20,000 cost, $2,000 salvage value, 5 years useful life

Double Declining Depreciation Calculation:

Double Declining Rate= _____1_______* (2)

useful life

Depre. Exp. = Beginning of the Year Book Value * (Double Declining Rate) * (time in service)

Year	Beg. Of Year Book Value*	Depre. Rate *	Time in Service=	Depre. Exp.	Accum. Depre.	Ending Book Value
	(from prior year ending)	(calculate ¼)	(use months)	(compute)	(add prior Depre. exp.)	(cost- accum. depre.)
	a	b	c	**abc = d**	e	*(cost-e) = f*
2018	$20,000	40%	(6/12)	$4,000	$4,000	$16,000
2019
2020
2021
2022
2023

The journal entry to record the Depreciation Expense for Year 1 is:

Date	Accounts	Debit	Credit
12/31/18	Depreciation Expense - Truck	$4,000
	Accumulated Deprec. - Truck		$4,000

The journal entry to record the Depreciation Expense for Year 2 is:

Date	Accounts	Debit	Credit
12/31/19

Expert Solution

Deprec

ekkarill92 answered 2 years ago

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