20:42 No SIMS Not Secure-fbemoodle.emu.edu.tr Question 2 Diaz Company owns a lorry that cost $50,000 when parchased on Apil 1, 2013 Instractions: Prepare Diaz Company's journal entries for the following independent transactions. Show the suppoeting calculations) The loy is sold for $34,000 cash on December 31, 2015 Assume that the lorry has been depreciated using double- doclining balance method with fractional periods rounded to the nearest whole month, based on estimated salvage value of $5,000 and an estimated useful life of 20 years. Answer b The lorry is traded-in as part of the purchase of a new lorry on Docember 31, 2016. The list price of the new lorry and trade-in allowance given for the old loery are $55,000 and $34,000 respectively. Diaz Company pays $21,000 cash to get the new lorry. Assume that the old lorry has been depreciated using straight-line method with fractional periods rounded to the nearest whole month based on estimated salvage value of $5,000 and an estimated useful life of 10 years. 20:42 No SIMS Not Secure-fbemoodle.emu.edu.tr Question 2 Diaz Company owns a lorry that cost $50,000 when parchased on Apil 1, 2013 Instractions: Prepare Diaz Company's journal entries for the following independent transactions. Show the suppoeting calculations) The loy is sold for $34,000 cash on December 31, 2015 Assume that the lorry has been depreciated using double- doclining balance method with fractional periods rounded to the nearest whole month, based on estimated salvage value of $5,000 and an estimated useful life of 20 years. Answer b The lorry is traded-in as part of the purchase of a new lorry on Docember 31, 2016. The list price of the new lorry and trade-in allowance given for the old loery are $55,000 and $34,000 respectively. Diaz Company pays $21,000 cash to get the new lorry. Assume that the old lorry has been depreciated using straight-line method with fractional periods rounded to the nearest whole month based on estimated salvage value of $5,000 and an estimated useful life of 10 years