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$ 1. Prepare journal entries related to a piece of equipment. a. Determine the acquisition cost of a truck, using the following info: Purchase Price
$ 1. Prepare journal entries related to a piece of equipment. a. Determine the acquisition cost of a truck, using the following info: Purchase Price $ 275,000 Sales Tax $ 27,500 Registration & Vehicle License Fee $ 5,500 Artwork for business logo, phone number & email $ 4,000 Insurance $ 2,400 b. Purchase date: 7/1/19 Cash Down Payment: $55,000 Total in a. Note Payable: minus Down Payment c Record straight-line depreciation expense for the year ended 12/31/19 Useful Life in years 5 Salvage Value $25,000 d Record the sale of the asset on 12/31/23 Sales price $65,000 Question 6 1 pts Which method of calculating depreciation expense is the LEAST accurate? O Straight-Line Double Declining Balance O Units of Production O All methods are equally accurate Question 7 1 pts The Gain on Sale of the Truck is entered as a: O CR O DR O Expense Receivable Question 8 1 pts At the time of sale, the balance in Accumulated Depreciation is: O $253,350 O $306,500 O $225,200 $56,300
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