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Jokoy Company completed the following transactions and events involving its delivery trucks. Depreciation for the year is recorded at the end of year on Dec
Jokoy Company completed the following transactions and events involving its delivery trucks. Depreciation for the year is recorded at the end of year on Dec 31. Year 1
January 1 | Paid $20,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account. |
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December 31 | Recorded annual straight-line depreciation on the truck. |
Year 2
December 31 | The trucks estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. Assume change occured at beginning at Year 2 (Jan 1) |
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Year 3
December 31 | Recorded annual straight-line depreciation on the truck. |
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December 31 | Sold the truck for $5,500 cash. |
Required: 1-a. Calculate depreciation for Year 2 with changes in useful life and salvage value noted above 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events.
Complete this question by entering your answers in the tabs below. Calculate depreciation for Year 2. Complete this question by entering your answers in the tabs below. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. Complete this question by entering your answers in the tabs below. Prepare journal entries to record these transactions and events. Journal entry worksheet 5 Record the total cost of the new delivery truck. Note: Enter debits before creditsStep by Step Solution
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