Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with 3-5 Bill's Photos buys a truck on 4/1/2000 for the business. The cost is 150,000 and they expect to use it

image text in transcribed

I need help with 3-5

Bill's Photos buys a truck on 4/1/2000 for the business. The cost is 150,000 and they expect to use it for 6 years and expect a salvage value at that time of $6,000. Use straight line depreciation. PAY ATTENTION TO THE DATES 1. Describe the purchase of the truck with a journal entry: Account Debit Date 4/1/2000 Truck Credit $150,000.00 Cash $150,000.00 2. Describe the first MONTHS (one Month) depreciation with a journal entry 4/30/2000 Debit Credit Date Account 4/30/2000 Depreciation expense Accumulated depreciation 2000 2000 3. They decide to sell the truck on 10/31/2004. What is the net book value at this time? 4. The truck is sold for 12,000 cash on 10/31/2004. Describe this with a journal entry. Date Account Debit Credit Go back to the original assumptions. Assume they used miles driven as the method of depreciation. They believe it will be used 100,000 miles with the same 6,000 salvage value. 5. Describe the first months depreciation if they drive the truck 3,000 miles. Date Account Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit In Higher Education

Authors: Alison Holmes, Sally Brown

1st Edition

0749433000, 978-0749433000

More Books

Students also viewed these Accounting questions

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago

Question

define the term outplacement

Answered: 1 week ago

Question

describe the services that an outplacement consultancy may provide.

Answered: 1 week ago