11-4 (Part Level Submission)

A depreciation schedule for semi-trucks of Ichiro Manufacturing Company was requested by your auditor soon after December 31, 2015, showing the additions, retirements, depreciation, and other data affecting the income of the company in the4-year period 2012 to 2015, inclusive. The following data were ascertained.

Balance of Trucks account, Jan. 1, 2012
Truck No. 1 purchased Jan. 1, 2009, cost	$18,720
Truck No. 2 purchased July 1, 2009, cost	22,880
Truck No. 3 purchased Jan. 1, 2011, cost	31,200
Truck No. 4 purchased July 1, 2011, cost	24,960
Balance, Jan. 1, 2012	$97,760

The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2012, and entered in the ledger, had a balance on that date of $31,408(depreciation on the four trucks from the respective dates of purchase, based on a5-year life, no salvage value). No charges had been made against the account before January 1, 2012.

Transactions between January 1, 2012, and December 31, 2015, which were recorded in the ledger, are as follows.

July 1, 2012	Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $41,600. Ichiro Mfg. Co. paid the automobile dealer $22,880cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,880. The transaction has commercial substance.
Jan. 1, 2013	Truck No. 1 was sold for $3,640cash; entry debited Cash and credited Trucks, $3,640.
July 1, 2014	A new truck (No. 6) was acquired for $43,680cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.)
July 1, 2014	Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $728cash. Ichiro Mfg. Co. received $2,600from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,328, and credits to Miscellaneous Income, $728, and Trucks, $2,600.

Entries for depreciation had been made at the close of each year as follows: 2012, $21,840; 2013, $23,400; 2014, $26,052; 2015, $31,616.