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ACCT 3110 Fall 2017 / Chapter 11 Homework Problem 11-4 A depreciation schedule for semi-trucks of Ichiro showing the additions, retirements, depreciation, inclusive. The following
ACCT 3110 Fall 2017 / Chapter 11 Homework Problem 11-4 A depreciation schedule for semi-trucks of Ichiro showing the additions, retirements, depreciation, inclusive. The following data were ascertained Manufacturing Company was requested by your auditor soon after December 31, 2018 and other data affecting the income of the company in the 4-year period 2015 to 2018 Balance of Trucks account, Jan. 1, 2015 Truck No. 1 purchased Jan. 1, 2012, cost Truck No. 2 purchased July 1, 2012, cost Truck No. 3 purchased Jan. 1, 2014, cost Truck No. 4 purchased July 1, 2014, cost Balance, Jan. 1, 2015 $18,000 22,000 30,000 24,000 $94,000 The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on th charges had been made against the account before January 1, 2015. Transactions between January 1, 2015, and December 31, 2018, which were recorded in the ledger, are as follows. luly 1, 2015 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was the four trucks from the respective dates of purchase, based on a 5-year lde, no salvage value). No $40,000. Ichiro. paid the Cash, $22,000. The automoble dealer $22,000 cash on the transaction. The entry was a debit to Trucks and a credit to transaction has commercial substance Truck No. 1 was sold for $3,s00 cash; entry debited Cash and credited Trucks, $3,500. truck No. 2 was not retired.) Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $700 cash. Ichiro received Miscellaneous Income, $700, and Trucks, $2,500. Jan. 1, 2016 July 1, 2017 A new truck (No 6) was acquired for $42,000 cash and was charged at that amount to the T July 1, 2017 was a debit to Cash, $3,200, and credits to Entries for straight-ine $25,050; 2018, $30,400 depreciation had been made at the close of each year as follows: 2015, $21,000; 2016, $22,500; 2017, for each of the 4 years, compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) income tax considerations. (Enter credit, understated and Per Company Books As Adjusted A. Dep. Retained Trucks dr. Trucks dr. Earnings dr. (.) Trucks dr. A. Dep. Retained Trucks dr, Earnings dr, Overstated (cr) (Understated) 1/1/15 Balance 7/1/15 Purchase Truck #5 Trade Truck ,3 12/31/15Depreciation 12/31/15Balances 1/1/16 Sale of Truck #1 12/31/160epreciation 12/31/16Balances 7/1/17 Purchase of Truck #6 7/1/17 Disposal of Truck #4 12/31/17Depreciation 12/31/17Balances 12/31/18Depreciation 12/31/18Balance ACCT 3110 Fall 2017 / Chapter 11 Homework Problem 11-4 A depreciation schedule for semi-trucks of Ichiro showing the additions, retirements, depreciation, inclusive. The following data were ascertained Manufacturing Company was requested by your auditor soon after December 31, 2018 and other data affecting the income of the company in the 4-year period 2015 to 2018 Balance of Trucks account, Jan. 1, 2015 Truck No. 1 purchased Jan. 1, 2012, cost Truck No. 2 purchased July 1, 2012, cost Truck No. 3 purchased Jan. 1, 2014, cost Truck No. 4 purchased July 1, 2014, cost Balance, Jan. 1, 2015 $18,000 22,000 30,000 24,000 $94,000 The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on th charges had been made against the account before January 1, 2015. Transactions between January 1, 2015, and December 31, 2018, which were recorded in the ledger, are as follows. luly 1, 2015 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was the four trucks from the respective dates of purchase, based on a 5-year lde, no salvage value). No $40,000. Ichiro. paid the Cash, $22,000. The automoble dealer $22,000 cash on the transaction. The entry was a debit to Trucks and a credit to transaction has commercial substance Truck No. 1 was sold for $3,s00 cash; entry debited Cash and credited Trucks, $3,500. truck No. 2 was not retired.) Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $700 cash. Ichiro received Miscellaneous Income, $700, and Trucks, $2,500. Jan. 1, 2016 July 1, 2017 A new truck (No 6) was acquired for $42,000 cash and was charged at that amount to the T July 1, 2017 was a debit to Cash, $3,200, and credits to Entries for straight-ine $25,050; 2018, $30,400 depreciation had been made at the close of each year as follows: 2015, $21,000; 2016, $22,500; 2017, for each of the 4 years, compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) income tax considerations. (Enter credit, understated and Per Company Books As Adjusted A. Dep. Retained Trucks dr. Trucks dr. Earnings dr. (.) Trucks dr. A. Dep. Retained Trucks dr, Earnings dr, Overstated (cr) (Understated) 1/1/15 Balance 7/1/15 Purchase Truck #5 Trade Truck ,3 12/31/15Depreciation 12/31/15Balances 1/1/16 Sale of Truck #1 12/31/160epreciation 12/31/16Balances 7/1/17 Purchase of Truck #6 7/1/17 Disposal of Truck #4 12/31/17Depreciation 12/31/17Balances 12/31/18Depreciation 12/31/18Balance
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