Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1 2016, Farm Fresh Industries purchased a specialized delivery truck for $264,000. At the time, Farm Fresh estimated the truck to have a

image text in transcribed
image text in transcribed
On July 1 2016, Farm Fresh Industries purchased a specialized delivery truck for $264,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $24,000. On March 1, 2021, the truck was sold for $115,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2021 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $141,000, prepare the journal entry to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entries to update depreciation in 2021 and record the sale of the truck. (If no entry is required for a transaction event, select "No journal entry required in the first account field.) General Journal Debit Credit 5.000 Depreciation expense Accumulated depreciation 5.000 115.000 9.000 Los on sale of truck On July 1, 2016, Farm Fresh Industries purchased a specialized delivery truck for $264,000. At the time, Farm Fresh estimated truck to have a useful life of eight years and a residual value of $24,000. On March 1, 2021, the truck was sold for $115 uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2021. 2. Prepare the journal entry to record the sale of the truck 3. Assuming that the truck was instead sold for $141,000, prepare the journal entry to record the sale. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Assuming that the truck was instead sold for $141,000, prepare the journal entry to record the sale. (If no entry is required for a transaction/event, select "No journal entry required" in the first account held.) No Event General Journal Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Reporting Und Behavioral Accounting Verhaltenswirkungen Des Berichtswesens Im Unternehmen

Authors: Andreas Taschner

2nd., 2nd. Auflage Aufl. 2019 Edition

3658234911, 978-3658234911

More Books

Students also viewed these Accounting questions

Question

Discuss all branches of science

Answered: 1 week ago

Question

Presentations Approaches to Conveying Information

Answered: 1 week ago