Question
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 | $ | 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 | $ 2626 | $ 2626 | |||
(2) | Units-of-activity method | $ 4316 | $ 3406 | |||
(3) | Declining-balance method | $ 5800 | $ 4640 |
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.
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 WorkStep by Step Solution
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