Yoshi Company completed the following transactions and events involving its deli
ID: 2398410 • Letter: Y
Question
Yoshi Company completed the following transactions and events involving its delivery trucks. 2015 Jan. 1 Paid $23,515 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. 2016 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 straight-line depreciation on the truck. 2017 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,500 cash Calculate depreciation for year 2016 Total cost Less accumulated depreciation (from 2015) Book value Less revised salvage value Remaining cost to be depreciated Years of life remaining Total depreciation for 2016Explanation / Answer
total cost 25450 less Accumulated depreciation (2015) 4660 book value 20790 less revised salvage value 2,700 remaining cost to be depreciated 18,090 years of life remaining 3 total depreciation for 2016 6030 Depreciation expense (for 2015) 4660 Depreciation expense (for 2016) 6030 Depreciation expense (for 2017) 6030 Accumulated depreciation 12/31/2017 16720 book value of truck at 12/31/2017 8730 total cost 25450 Accumulated deprecciation 16,720 book value 12/31/2017 8730 loss on sale of truck (8730-5500) 3230 no Date General Journal Debit Credit 1 1/1/2015 Trucks 25,450 cash 25,450 2 12/31/2015 Depreciation expense 4,660 Accumulated depreciation 4660 3 12/31/2016 Depreciation expense 6,030 Accumulated depreciation 6,030 4 12/31/2017 Depreciation expense 6,030 Accumulated depreciation 6,030 5 12/31/2017 Cash 5,500 Accumulated depreciation 16,720 loss on sale of truck 3,230 Truck 25,450
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