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Neverlate Ltd completed the following transactions involving delivery trucks. Help Check my work mode : This shows what is correct or incorrect for the work
Neverlate Ltd completed the following transactions involving delivery trucks.
Help Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate cu NeverLate Ltd. completed the following transactions involving delivery trucks 2020 Mar. 26 Paid cash for a new delivery truck, $99,150 plus $4,850 of freight costs. The truck was estimated to have a five-year life and a $10,000 trade-in value. Dec. 31 Recorded straight-line depreciation on the truck to the nearest whole month. 2021 Dec. 31 Recorded straight-line depreciation on the truck to the nearest whole month. However, due to new information obtained early in January, the original estimated useful life of the truck was ged from five years to four years, and the original estimated trade-in value was increased to $14,500. Required: Prepare journal entries to record the transactions. (Do not round intermediate calculations.) Answer is complete but not entirely correct. General Journal No Date Credit Debit 104,000 1 Mar. 26, 2020 Delivery truck Cash 104,000 2 Dec 31, 2020 14,100 Depreciation expense, delivery truck Accumulated depreciation, delivery truck 14,100 17.675 Dec 31, 2021 Depreciation expense, delivery truck Accumulated depreciation, delivery truck . 17,675 Step by Step Solution
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