On January 1, Year 1, Joel Harvey Florists JHF acquired a delivery truck. JHF paid $11,000 for the truck, $500 for sales taxes, and $250 to have the companys name painted on its side. JHF uses the straight-line method of depreciation and the accounting manager estimates that the truck will have a five-year useful life and a residual value of $1,750.

a. Prepare the journal entry to record the acquisition of the truck.

b. Prepare the adjusting journal entries required to record depreciation for Years 1, 2, and 3

c. Determine the book value of the truck as of the end of Year 3.

HANDOUT 9-2 ACQUISITION, USE AND DISPOSAL - JOURNAL ENTRIES On January 1, Year 1, Joel Harvey Florists JHF" acquired a delivery truck. JHF paid $11,000 for the truck, $500 for sales taxes, and $250 to have the company's name painted on its side. JHF uses the straight-line method of depreciation and the accounting manager estimates that the truck will have a five-year useful life and a residual value of $1,750. a. Prepare the journal entry to record the acquisition of the truck. Accounts Debit Credit Date 1/1/Y1 b. Prepare the adjusting journal entries required to record depreciation for Years 1, 2, and 3. Accounts Debit Credit Date 12/31/Y1 Accounts Debit Credit Date 12/31/Y2 Accounts Debit Credit Date 12/31/Y3 c. Determine the book value of the truck as of the end of Year 3. d. Calculate the amount of any gain or loss if the truck is sold for $3,500 at the end of Year 3