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Problem 8-5A Computing and revising depreciation; selling plant assets LO C2, P1, P2 Yoshi Company completed the following transactions and events involving its delivery trucks.
Problem 8-5A Computing and revising depreciation; selling plant assets LO C2, P1, P2 Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid $22,015 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. 2017 Dec. 31 Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. 2018 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,300 cash. Required: 1-a. Calculate depreciation for year 2017. 1-b. Calculate book value and gain (loss) for sale of Truck on December, 2018. 1-c. Prepare journal entries to record these transactions and events. Required 1A Required 1B Required 10 Calculate depreciation for year 2017. Total cost Less accumulated depreciation (from 2016) Book value Less revised salvage value Remaining cost to be depreciated Years of life remaining Total depreciation for 2017 Required 1A Required 1B Required 10 Calculate book value and gain (loss) for sale of Truck on December, 2018. $ Depreciation expense (for 2016) Depreciation expense (for 2017) Depreciation expense (for 2018) Accumulated depreciation 12/31/2018 Book value of truck at 12/31/2018 Total cost Accumulated depreciation 4,360 5,580 5,580 15,520 Can you double check this one? I think I got it right. $ 23,800 15,520 8,280 2,780 Book value 12/31/2018 Loss on sale of truck $ Required 1A Required 1B Required 1C Prepare journal entries to record these transactions and events. View transaction list Journal entry worksheet 1 Record the total cost of the new delivery truck. - 3 4 5 2 Record the year-end adjusting entry for the depreciation expense of the delivery truck. 3 Record the year-end adjusting entry for the depreciation expense of the delivery truck. Record the total cost of the new delivery tr 4 Record the year-end adjusting entry for the depreciation expense of the delivery truck. 5 Record the sale of the delivery truck for $5,300 cash. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01, 2016 Record entry Clear entry View general journal
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