can I have the solution for part B A truck was purchased on 1/01/11 for $32,000.
ID: 2466366 • Letter: C
Question
can I have the solution for part B
A truck was purchased on 1/01/11 for $32,000. Additionally, $1,000 was paid for painting the company name on the side of the truck and $3,000 for a special protective bedliner to enable the truck to be used to deliver fragile Big Red statues to the customers. $700 was paid for annual licensing and $1, 200 for a one-year insurance policy. List and total the expenditures that would go into the asset account. Truck, and be depreciated. Make the journal entry for the acquisition of the truck on 1/01/11. Which expenditure would be expensed immediately upon spending the money? Which expenditure would be put into a current asset account? The truck is determined to have an estimated 6-year useful life and an estimated salvage value of $2,000. Write the journal entry made on 12/31/11, 12/31/13, and 12/31/14. Write only one of the identical 4 journal entries for the yearly depreciation expense.Explanation / Answer
Cost of licensing and insurance will be expensed and not capitalized
Purchase price
$32,000
Painting letter
1,000
Special cost
3,000
Total cost
36,000
Depreciation = total cost – salvage value / estimated life
= (36,000 – 2000) /6
= $5,667
Journal entry
Depreciation expense
$5,667
To Accumulated depreciation
$5,667
Method used – Straight line of depreciation
Cost of licensing and insurance will be expensed and not capitalized
Purchase price
$32,000
Painting letter
1,000
Special cost
3,000
Total cost
36,000
Depreciation = total cost – salvage value / estimated life
= (36,000 – 2000) /6
= $5,667
Journal entry
Depreciation expense
$5,667
To Accumulated depreciation
$5,667
Method used – Straight line of depreciation
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