Part 1:

Prepare a depreciation schedule showing depr. exp., accumulated depreciation and ending book value, year-by-year.

3 schedules for the 3 methods: straight-line, units-of-production, double declining basis. Asset is a delivery Truck.

Est. Life ............4

Orig. Cost Basis 24,700.00

Est. Residual Value 1,000.00

Est. total milage 100,000

miles driven, Yr 1 22,800

miles driven, Yr 2 24,400

miles driven, Yr 3 29,400

miles driven, Yr 4 23,400

Part 2:

Assuming the truck is sold at the end of yr. 3, give the gen. journal entry to record the sale (straight-line method)

assume it was sold for: $6,800.00

Attached is what I have but I know my journal is wrong and the Fourth year depreciation needs to be forced to the book value.

Life Period Straight line Units Of Production 4 Cost Residual Value 1 24,700.00 1,000.00 2 24,700.00 1,000.00 3 24,700.00 1,000.00 4 24,700.00 1,000.00 Cost Residual Value 1 24,700.00 1,000.00 2 24,700.00 1,000.00 3 24,700.00 1,000.00 4 24,700.00 1,000.00 Double Declining Balance Cost 24,700.00 ### 24,700.00 24,700.00 2. Journal entry Cash Accumulated Depreciation Delivery Equipment Gain onSale To record sale 6,800.00 17,775.00 24,700.00 125.00 years Depreciable Cost Depreciation Accumulated Depreciation Carrying Value 23,700.00 5,925.00 5,925.00 18,775.00 23,700.00 5,925.00 11,850.00 12,850.00 23,700.00 5,925.00 17,775.00 6,925.00 23,700.00 5,925.00 23,700.00 1,000.00 Depreciable Cost Output Depreciation 23,700.00 22,800.00 23,700.00 24,400.00 23,700.00 29,400.00 23,700.00 23,400.00 5,403.60 5,782.80 6,967.80 5,545.80 Accumulated Depreciation 5,403.60 11,186.40 18,154.20 23,700.00 Depreciable Cost Depreciation Accumulated Depreciation Carrying Value 24,700.00 12,350.00 12,350.00 12,350.00 ### 6,175.00 18,525.00 6,175.00 ### 3,087.50 21,612.50 3,087.50 ### 1,543.75 23,156.25 1,543.75 Carrying Value 19,296.40 13,513.60 6,545.80 1,000.00