Intro Assignment to Use of Excel in ACC 112

Jeffries Company purchased a delivery truck for $90,000 on January 1, 2017. The truck has an expected salvage value of $4,000, and is estimated to be driven 160,000 miles over its estimated useful life of 8 years. Actual miles driven were 28,000 in 2017; 27,000 in 2018; 23,000 in 2019; 21,000 in 2020 18,000 in 2021; 16,000 in 2022; 13,000 in 2023 and 14,000 in 2024.

Instructions

(a) Using the attached Excel template complete the worksheet and compute depreciation expense, accumulated depreciation and carrying value for each year ending 2017 to 2024 using:

(1) the straight-line method

(2) the units-of-activity method

(3) the double-declining balance method

(b) Assume that Jeffries uses the straight-line method.

(1) Prepare the journal entry to record 2017 depreciation.

(2) Show how the truck would be reported in the December 31, 2017, balance sheet.