Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please show work. please show work. Ixt A depreciation schedule for semi-trucks of Marigold Manufacturing Company was requested by your audi tor soon after December
Please show work.
please show work.
Ixt A depreciation schedule for semi-trucks of Marigold Manufacturing Company was requested by your audi tor soon after December 31 , 2026, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4 -year period 2023 to 2026, inclusive. The following data were ascertained. The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2023, and entered in the ledger, had a balance on that date of $31,408 (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, 2023. Transactions between January 1, 2023, and December 31. 2026, which were recorded in the ledger, are as follows. July 1, 2023 Truck No. 3 was traded for a larger one (No. S), the agreed purchase price of which was $41,600. Marigold paid the automobile dealer $22,880 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,880. The transaction has commercial substance. Jan. 1, 2024 Truck No, 1 was sold for $3,640 cash; entry debited Cash and credited Trucks, $3,640. July 1. 2025 A new truck (No. 6) was acquired for $43.680 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired) July 1.2025 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $728 cash. Marigold received $2,600 from the insurance company. The entry made by the bookloeeper was a debit to Cash $3.328, and credits to Miscellaneous income, $728, and Trucks, 52,600. Entries for straight-line depreciation had been made at the close of each year as follows: 2023, $21,840;2024,$23,400;2025, $26,052; and 2026,$31,616. 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 eg. 45 or parentheses eg. (45).). As Adjusted As Adjusted Ixt A depreciation schedule for semi-trucks of Marigold Manufacturing Company was requested by your audi tor soon after December 31 , 2026, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4 -year period 2023 to 2026, inclusive. The following data were ascertained. The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2023, and entered in the ledger, had a balance on that date of $31,408 (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, 2023. Transactions between January 1, 2023, and December 31. 2026, which were recorded in the ledger, are as follows. July 1, 2023 Truck No. 3 was traded for a larger one (No. S), the agreed purchase price of which was $41,600. Marigold paid the automobile dealer $22,880 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $22,880. The transaction has commercial substance. Jan. 1, 2024 Truck No, 1 was sold for $3,640 cash; entry debited Cash and credited Trucks, $3,640. July 1. 2025 A new truck (No. 6) was acquired for $43.680 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired) July 1.2025 Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $728 cash. Marigold received $2,600 from the insurance company. The entry made by the bookloeeper was a debit to Cash $3.328, and credits to Miscellaneous income, $728, and Trucks, 52,600. Entries for straight-line depreciation had been made at the close of each year as follows: 2023, $21,840;2024,$23,400;2025, $26,052; and 2026,$31,616. 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 eg. 45 or parentheses eg. (45).). As Adjusted As Adjusted Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started