Cheadle Company purchased a fleet of 20 delivery trucks for $8,000 each on January 2, 2019. It decided to use composite depreciation on a straight-line basis and calculated the depreciation from the following schedule:

Cheadle actually retired the trucks according to the following schedule (assume each truck was retired at the beginning of the year):

Required:
1. Prepare the journal entries necessary to record the preceding events.
2. Assume that the company expected all the trucks to last 4 years and be retired for $1,600 each. Using group depreciation, prepare journal entries for all 6 years, assuming the company retired the trucks as shown by the latter schedule.

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Number of Trucks to Be Retired at Year-End Estimated Residual Value per Truck Year $4,000 4,000 2,000 2020 2021 2022 2023 6 4 Total Proceeds from Retirements Year Number of Trucks Retired $ 4,000 11,000 19,000 6,000 4,000 1,000 2020 2021 2022 2023 3 5 3 2024 2025