Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I can't get the depreciation expense for the truck in years 2,3,4 Journal Entries for Plant Assets Ediza Delivery Service had the following transactions related
I can't get the depreciation expense for the truck in years 2,3,4
Journal Entries for Plant Assets Ediza Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. 1 Purchased for $32,500 cash a new delivery truck with an estimated useful life of five years and a $6,850 salvage value. Mar. 2 Paid $750 for painting the company name and logo on the truck. Dec. 31 Recorded depreciation on the truck for the year. Year 2 July 1 Installed air conditioning in the truck at a cost of $1,808 cash. Although the truck's estimated useful life was unaffected, its estimated salvage value was increased by $400. Sept7 Paid $600 for truck tune-up and safety inspection. Dec. 31 Recorded depreciation on the truck for the year. Year 3 Sept 3 Installed a set of front and rear bumper guards at a cost of $125 cash. Dec. 31 Recorded depreciation on the truck for the year. Year 4 Dec. 31 Recorded depreciation on the truck for the year. Ediza's depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $150 or less. Required Prepare journal entries to record these transactions and adjustments. Round answers to the nearest whole number, when appropriate. Journal Entries for Plant Assets Ediza Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. 1 Purchased for $32,500 cash a new delivery truck with an estimated useful life of five years and a $6,850 salvage value. Mar. 2 Paid $750 for painting the company name and logo on the truck. Dec. 31 Recorded depreciation on the truck for the year. Year 2 July 1 Installed air conditioning in the truck at a cost of $1,808 cash. Although the truck's estimated useful life was unaffected, its estimated salvage value was increased by $400. Sept7 Paid $600 for truck tune-up and safety inspection. Dec. 31 Recorded depreciation on the truck for the year. Year 3 Sept 3 Installed a set of front and rear bumper guards at a cost of $125 cash. Dec. 31 Recorded depreciation on the truck for the year. Year 4 Dec. 31 Recorded depreciation on the truck for the year. Ediza's depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $150 or less. Required Prepare journal entries to record these transactions and adjustments. Round answers to the nearest whole number, when appropriateStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started