1. Yoshi Company completed the following transactions and events involving its d
ID: 2339018 • Letter: 1
Question
1.
Yoshi Company completed the following transactions and events involving its delivery trucks 2016 Jan. 1 Paid $22,015 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a Dec. 31 Recorded annual straight-line depreciation on the truck. 2017 2,300 salvage value. Delivery truck costs are recorded in the Trucks account. 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 $2,850. 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 s5,500 cash. Required: 1-a. Calculate depreciation for year 2017. 1-b. Calculate book value and gain (loss) for sale of Truck on December, 2018. 1-c. Prepare journal entries to record these transactions and events.Explanation / Answer
total cost 23650 less Accumulated depreciation (2016) 4270 book value 19380 less revised salvage value 2,850 remaining cost to be depreciated 16,530 years of life remaining 3 total depreciation for 2017 5510 Depreciation expense (for 2016) 4270 Depreciation expense (for 2017) 5510 Depreciation expense (for 2018) 5510 Accumulated depreciation 12/31/2018 15290 book value of truck at 12/31/2018 8360 total cost 23650 Accumulated deprecciation 15,290 book value 12/31/2018 8360 loss on sale of truck (8360-5500) 2860 no Date General Journal Debit Credit 1 1/1/2015 Trucks 23,650 cash 23,650 2 12/31/2015 Depreciation expense 4,270 Accumulated depreciation 4270 3 12/31/2016 Depreciation expense 5,510 Accumulated depreciation 5,510 4 12/31/2017 Depreciation expense 5,510 Accumulated depreciation 5,510 5 12/31/2017 Cash 5,500 Accumulated depreciation 15,290 loss on sale of truck 2,860 Truck 23,650
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