Yoshi Company completed the following transactions and events involving its delivery trucks.

Year 1

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.

Year 2

Dec.

31

The trucks 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.

Year 3

Dec.		31		Recorded annual straight-line depreciation on the truck.
Dec.		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.

• Required 1A
• Required 1B
• Required 1C

Calculate depreciation for Year 2.

Total cost
Less accumulated depreciation (from Year 1)
Book value
Less revised salvage value
Remaining cost to be depreciated
Years of life remaining
Total depreciation for Year 2

Calculate book value and gain (loss) for sale of Truck on December 31, Year 3.

Depreciation expense (for Year 1)
Depreciation expense (for Year 2)
Depreciation expense (for Year 3)
Accumulated depreciation 12/31/Year 3
Book value of truck at 12/31/Year 3
Total cost
Accumulated depreciation
Book value 12/31/Year 3

Journal entry worksheet

• Record the total cost of the new delivery truck.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Jan 01, Year 1