Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $23,515 cash plus $1,785 in sales tax for

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 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 $5,600 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. -C. Prepare journal entries to record these Complete this question by entering your answers in 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 Record the total cost of the new delivery truck. Note: Enter debits before credits. Date General Journal Debit Credit January 01, Year 1 Record entry Clear entry View general Journal Record the year-end adjusting entry for the depreciation expense of the delivery truck. Note: Enter debits before credits. Date General Journal Debit Credit December 31, Year 2 Record entry Clear entry View general journal Journal entry worksheet 1 2 3 4 5 Record the year-end adjusting entry for the depreciation expense of the delivery truck. Note: Enter debits before credits. General Journal Debit Credit Date December 31, Year 3 Record entry Clear entry View general journal Journal entry worksheet

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 The Impact On Decision Makers

Authors: Gary A. Porter, Curtis L. Norton

2nd Edition

0030270995, 978-0030270994

More Books

Students also viewed these Accounting questions

Question

1 Why might people resist change?

Answered: 1 week ago