s, an ntangibles ny completed the following transactions and events involving it
ID: 2581562 • Letter: S
Question
s, an ntangibles ny completed the following transactions and events involving its delivery trucks. Yoshi Company Pr 2016 , Paid $20.515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five- pl de Jan year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. Recorded annual straight-line depreciation on the truck Dec. 31 C 2017 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 $2,400. Re corded annual straight-line depreciation on the truck. 31 2018 Dec 3 Recorded annual straight-line depreciation on the truck. 31 Sold the truck for $5,300 cash. Required Prepare journal entries to record these transactions and events.Explanation / Answer
Date Account titles & Explanations Debit Credit 2016 1-Jan Truck 22000 cash 22,000 31-Dec Depreciation expense 4000 Accumulated depreciation 4,000 (22000-2000)/5 2017 31-Dec Depreciation expense 5,200 Accumulated depreciation 5,200 (22000-4000 = 18,000) (18000-2400)/(4-1) 5200 2018 31-Dec Depreciation expense 5,200 Accumulated depreciation 5,200 31-Dec cash 5,300 Accumulated depreciation (4000+5200*2) 14400 loss on disposal 2,300 Truck 22,000
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