Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Quick help please Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $ 2 2 , 0

Quick help please
Yoshi Company completed the following transactions and events involving its delivery trucks.
Year 1
January 1 Paid $22,015 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 salvage value. Delivery truck costs are recorded in the Trucks account.
December 31 Recorded annual straight-line depreciation on the truck.
Year 2
December 31 The truck's estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,550. Recorded annual straight-line depreciation on the truck.
Year 3
December 31 Recorded annual straight-line depreciation on the truck.
December 31 Sold the truck for $5,500 cash.
Required:
1-a. Calculate depreciation for Year 2.
1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3.
1-c. Prepare journal entries to record these transactions and events.
Complete this question by entering your answers in the tabs below.
Required 1A
Required 1B
Required 1C
Calculate book value and gain (loss) for sale of Truck on December 31, Year 3.
\table[[Depreciation expense (for Year 1),],[Depreciation expense (for Year 2),],[Depreciation expense (for Year 3),],[Accumulated depreciation 1231?? Year 3,],[Book value of truck at 12/31/Year 3,],[Total cost,]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools For Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine, Christopher D. Burnley

8th Canadian Edition

ISBN: 111959457X, 978-1119594574

More Books

Students also viewed these Accounting questions