Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please, Answer part B2. (is the part that I need) Flint Company purchased a delivery truck for $29,000 on January 1, 2020. The truck has

Please, Answer part B2. (is the part that I need)

Flint Company purchased a delivery truck for $29,000 on January 1, 2020. The truck has an expected salvage value of $2,740, and is expected to be driven 101,000 miles over its estimated useful life of 10 years. Actual miles driven were 16,600 in 2020 and 13,100 in 2021.

a1. Calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation expense 0.26 $

image text in transcribed

per mile

part a2. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal places, e.g. 0.50 and depreciation rate to 0 decimal places, e.g. 15%. Round final answers to 0 decimal places, e.g. 2,125.)

Depreciation Expense

2020

2021

(1) Straight-line method $

2626image text in transcribed

$

image text in transcribed2626

(2) Units-of-activity method $

4316image text in transcribed

$

image text in transcribed3406

(3) Declining-balance method $

5800image text in transcribed

$

4640image text in transcribed

part b1. Assume that Flint uses the straight-line method. Prepare the journal entry to record 2020 depreciation.

Journal entries
Account Titles and Explanation DEBIT ($) CREDIT ($)
Depreciation Expense 2,626.00
Accumulated Depreciation of Truck 2,626.00
(To record depreciation of truck)

-------> part b2. Assume that Flint uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet.

image text in transcribedimage text in transcribed

Assume that Flint uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet. (Round answers to 0 decimal places, e.g. 2,125.) FLINT COMPANY Partial Balance Sheet Click if you would like to Show Work for this question: Open Show Work

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

Step: 3

blur-text-image

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

Accounting And Auditing Research Tools And Strategies

Authors: Thomas Weirich, Thomas C. Pearson, Alan Reinstein

6th Edition

032430224X, 9780324302240

More Books

Students also viewed these Accounting questions

Question

6. Focus on one idea at a time, and avoid digressions.

Answered: 1 week ago