QUESTION 1

QUESTION 2

In the recent years, PT Angus has purchased three delivery trucks. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method of each delivery truck, and various methods have been used. Information concerning the delivery trucks is summarized in the table below. Acquired Cost Delivery Truck . Useful Life (in years) 10 Salvage Value $10,000 $ 7,500 July 1, 2012 January 1, 2013 L $125,000 $ 95,000 Depreciation Method Straight-line Double declining- balance Units-of-activity C January 1, 2013 $ 96,000 $ 6,000 For the delivery truck nomor C, the truck is expected to be driven 150,000 miles. Actual miles of use in the first 3 years were: 2013: 2,800, 2014: 3,200; 2015: 3,300. Required: 1. 2. 3. 4. Prepare journal entries for purchasing those delivery trucks in cash. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. Year Book Value Beginning Depreciation Rate Annual Depreciation Expense Accumulated Depreciation Book Value Ending On January 1, 2016 PT Mega had 50,000 shares, $4 par value per share, During the year, the following transactions occured. April June July December December 1 Issued 9,000 additional shares of common stock for $11 per share. 15 Declared a cash dividend of $1,50 per share to stockholders of record on June 30 10 Paid the $1.50 cash dividend. 1 Issued 4,000 additional shares of common stock for $12 per share, 15 Declared a cash dividend on outstanding shares of $1.60 per share to stockholders of record on December 31 Required: Record/journalize all transactions above