Question
On January 1, 2013, Buildings-4-U Ltd. purchased 5 heavy duty dump trucks for cash. Each truck cost $35,000 and the estimated useful life was 5
On January 1, 2013, Buildings-4-U Ltd. purchased 5 heavy duty dump trucks for cash. Each truck cost $35,000 and the estimated useful life was 5 years with a residual value of $5,000. On the same day Buildings-4-U also purchased 5 small dump trucks for cash. Each small truck cost $15,000 and had an estimated useful life of 5 years and a residual value of $3,000. Buildings-4-U will use group amortization for the 20 trucks on a straight-line basis. Building-4-U has a December 31 year-end and only accounts for amortization at year-end. On March 1, 2014, one of the large trucks was involved in an accident, which resulted in a total loss; however, insurance claim proceeds of $21,000 were received from the insurance company. On June 1, 2014, the company purchased one additional heavy duty truck (same type) at a cost of $36,000 (useful life and residual value unchanged). Give all entries required on each of the following dates relating to the above transactions: January 1, 2013: December 31, 2013: March 1, 2014: June 1, 2014: December 31, 2014:
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