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Please help. Thanks in advance! A depreciation schedule for semi-trucks of Splish Manufacturing Company was requested by your auditor soon after December 31, 2021, showing
Please help. Thanks in advance!
A depreciation schedule for semi-trucks of Splish Manufacturing Company was requested by your auditor soon after December 31, 2021, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2018 to 2021, inclusive. The following data were ascertained. $22,320 27,280 Balance of Trucks account, Jan. 1. 2018 Truck No 1 purchased Jan 1, 2015, cost Truck No.2 purchased July 1, 2015, cost Truck No. 3 purchased Jan. 1, 2017 cost Truck No. 4 purchased July 1, 2017 cost Balance, Jan. 1. 2018 37,200 29.760 $116,560 The Accumulated Depreciation Trucks account previously adjusted to January 1, 2018, and entered in the ledger had a balance on that date of $37,448 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2018 Transactions between January 1, 2018, and December 31, 2021. which were recorded in the ledger, are as follows. Transactions between January 1, 2018, and December 31, 2021, which were recorded in the ledger, are as follows. July 1, 2018 Truck No. 3 was traded for a targer one (No. 5), the agreed purchase price of which was $49,600. Splish, paid the automobile dealer $27.280 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $27.280. The transaction has commercial substance. Jan 1, 2019 Truck No. 1 was sold for $4,340 cash; entry debited Cash and credited Trucks, $4,340. July 1, 2020 A new truck (No. 6) was acquired for $52,080 cash and was charged at that amount to the Trucks account. (Assume truck No.2 was not retired.) July 1, 2020 Truck No. 4 was damaged in a wreck to such an extent that it was sold asjunk for $868 cash. Splish received $3,100 from the insurance company. The entry made by the bookkeeper was a debit to Cash,$3,968, and credits to Miscellaneous Income. $868, and Trucks, $3,100. Entries for straight-line depreciation had been made at the close of each year as follows: 2018. $26,040; 2019, $27.900; 2020, $31,062:2021, $37,696 (a) For each of the 4 years.compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.g.-45 or parentheses e.s. (45).) ( a) For each of the 4 years, compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.3. - 45 or parentheses e.s. (45).) Per Company Books Trucks dr. Ir.) Acc. Dep. Trucks dr.(cr.) $ Balance $ 1/1/18 7/1/18 Purchase Truck #5 Trade Truck #3 12/31/18 Depreciation 12/31/18 Balances 1/1/19 Sale of Truck #1 12/31/19 Depreciation 12/31/19 Balances 7/1/20 Purchase of Truck #6 7/1/20 Disposal of Truck #4 12/31/20 Depreciation 12/31/20 Balances 12/31/21 Depreciation $ 12/31/21 Balance e Textbook and Media List of Accounts Attempts: unlimited Submit Answer Save for Later For each of the 4 years, compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) As Adjusted Retained Earnings dr. (cr.) Trucks dr. (cr.) Acc. Dep. Trucks dr. (cr.) $ $ $ 5 e Textbook and Media List of Accounts Save for Later Attempts: unlimited Submit Answer For each of the 4 years, compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring Income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e. 3.-45 or parentheses e... (45).) As Adjusted Net Acc. Dep., Trucks dr. (cr:) Retained Earnings dr. (cr.) Income Overstated (Understated) 1 $ ] $ e Textbook and Media Step by Step Solution
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