Cheadle Company purchased a fleet of $20$ delivery trucks for $$8,000$ each on January $2,$ Year $1.$ It decided to use composite depreciation on a straight$-$line basis and calculated the depreciation from the following schedule:

Year

Number of Trucks to

Estimated Residual

Be Retired at Year$-$End

Value per Truck

Year $22$ $$4,000$

Year $364,000$

Year $482,000$

Year $54$

Cheadle actually retired the trucks according to the following schedule $($assume each truck was retired at the beginning of the year$)$:

Year

Number of

Total Proceeds

Trucks Retired

from Retirements

Year $21$ $$4,000$

Year $3311,000$

Year $4619,000$

Year $556,000$

Year $634,000$

Year $721,000$

Required:

$1.$ Prepare the journal entries necessary to record the preceding events.

$2.$ Assume that the company expected all the trucks to last $4$ years and be retired for $$1,600$ each. Using group depreciation, prepare journal entries for all $6$ years, assuming the company retired the trucks as shown by the latter schedule.