Yoshi Company completed the following transactions and events involving its deli

Question

Yoshi Company completed the following transactions and events involving its delivery trucks. 2012 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 $2,450 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. 2013 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. 2014 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,500 cash.

Explanation / Answer

Date Account Title Dr CR Jan. 1 Delivery Truck 22450 Cash 22450 delivery truck costs are recorded in the Trucks account. Dec. 31 Depreciation Expense 4000 Accumulated Depreciation--Delivery Truck 4000 Recorded annual straight-line depreciation on the truck (22450-2450)/5 2013 Dec. 31 Depreciation Expense 5200 Accumulated Depreciation--Delivery Truck 5200 (22450-4000-2850)/3 Recorded annual straight-line depreciation on the truck. 2014 Dec. 31 Depreciation Expense 5200 Accumulated Depreciation--Delivery Truck 5200 Dec. 31 Recorded annual straight-line depreciation on the truck. 15600/3 Dec. 31 Cash 5500 Accumulated Depreciation--Delivery Truck 14400 Loss on Sale 2550 Delivery Truck 22450 Sale Of truck 59300 59300

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.