Question
A depreciation schedule for semi-trucks of Crane Manufacturing Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and
A depreciation schedule for semi-trucks of Crane Manufacturing Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2018 to 2021, inclusive. The following data were ascertained.
| Balance of Trucks account, Jan. 1, 2018 | ||
| Truck No. 1 purchased Jan. 1, 2015, cost | $18,180 | |
| Truck No. 2 purchased July 1, 2015, cost | 22,220 | |
| Truck No. 3 purchased Jan. 1, 2017, cost | 30,300 | |
| Truck No. 4 purchased July 1, 2017, cost | 24,240 | |
| Balance, Jan. 1, 2018 | $94,940 |
The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2018, and entered in the ledger, had a balance on that date of $30,502 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2018. Transactions between January 1, 2018, and December 31, 2021, which were recorded in the ledger, are as follows.
| July 1, 2018 | Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $40,400. Crane. paid the automobile dealer $22,220 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,220. The transaction has commercial substance. | |
| Jan. 1, 2019 | Truck No. 1 was sold for $3,535 cash; entry debited Cash and credited Trucks, $3,535. | |
| July 1, 2020 | A new truck (No. 6) was acquired for $42,420 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.) | |
| July 1, 2020 | Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $707 cash. Crane received $2,525 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,232, and credits to Miscellaneous Income, $707, and Trucks, $2,525. |
Entries for straight-line depreciation had been made at the close of each year as follows: 2018, $21,210; 2019, $22,725; 2020, $25,301; 2021, $30,704.
PLEASE for the first question check correctly the images and see the wrong answers that I have on the images because I already post this question and the expert only put the same answers as the image. That answers were and are wrong and I don't know how to get the correct ones. That is why I posting this.
For each of the 4 years, compute separately the increase or decrease in net income arising from the companys errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 
Prepare one compound journal entry as of December 31, 2021, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2021. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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Corporate Environmental Reporting The Western Approach To Nature
Authors: Leanne J Morrison
1st Edition
0367785455, 9780367785451
