Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whispering Winds Corp. purchased a delivery truck for $39,200 on January 1,2020. The truck has an expected salvage value of $2,200, and is expected to

image text in transcribedimage text in transcribedimage text in transcribed

Whispering Winds Corp. purchased a delivery truck for $39,200 on January 1,2020. The truck has an expected salvage value of $2,200, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 15,900 in 2020 and 12,800 in 2021. Your answer is partially correct. Compute depreciation expense for 2020 and 2021 using (1) the straight-line method, (2) the units-of-activity method, and (3) the double-declining-balance method. (Round depreciation cost per unit to 2 decimal piaces, eg. 0.50 and depreciation rate to 0 decimal places, eg 15%. Round final answers to 0 decimal places, eg 2,125) Depreciation Expense 2021 2020 4625 $ (1) Straight-line method 4625 (2) Units-of-activity method 5883$ 4736 (3) Double-declining-balance method 4625 e Textbook and Media List of Accounts Your answer is partially correct. Assume that Whispering Winds uses the straight-line method. Prepare the journal entry to record 2020 depreciation. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry"for the account titles and enter O for the amounts. Round answers to O decimal places, e.g. 2,125.) Account Titles and Explanation Debit Credit Depreciation Expense Accumulated Depreciation-Equipment Assume that Whispering Winds uses the straight-line method. Show how the truck would be reported in the December 31, 2020, balance sheet. (Round answers to O decimal places, eg. 2,125) Whispering Winds Corp. Partial Balance Sheet

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

Front Office Operations And Auditing Workbook

Authors: Patrick J. Moreo, Gail Sammons, Jeff Beck

2nd Edition

ISBN: 0130324930, 978-0130324931

More Books

Students also viewed these Accounting questions

Question

2. Define identity.

Answered: 1 week ago

Question

1. Identify three communication approaches to identity.

Answered: 1 week ago

Question

4. Describe phases of majority identity development.

Answered: 1 week ago