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 $2,300 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 $2,850 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 $5,600 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 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 Prepare journal entries to record these transactions and events 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 Record the year end adjusting entry for the depreciation expense of the delivery truck Note Enter debits before credits Date General Journal Debit Credit Dec 31, Year 1 Record the year end adjusting entry for the depreciation expense of the delivery truck Note Enter debits before credits Date General Journal Debit Credit Dec 31, Year 2 Record the year end adjusting entry for the depreciation expense of the delivery truck Note Enter debits before credits Date General Journal Debit Credit Dec 31, Year 3 Record the sale of the delivery truck for $5,600 cash Note Enter debits before credits Date General Journal Debit Credit Dec 31, Year 3

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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

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 $2,300 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 $2,850. 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 $5,600 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.

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

Prepare journal entries to record these transactions and events.

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
Record the year-end adjusting entry for the depreciation expense of the delivery truck.
Note: Enter debits before credits.

Date General Journal Debit Credit

Dec 31, Year 1
Record the year-end adjusting entry for the depreciation expense of the delivery truck.
Note: Enter debits before credits.

Date General Journal Debit Credit

Dec 31, Year 2
Record the year-end adjusting entry for the depreciation expense of the delivery truck.
Note: Enter debits before credits.

Date General Journal Debit Credit

Dec 31, Year 3
Record the sale of the delivery truck for $5,600 cash.
Note: Enter debits before credits.

Date General Journal Debit Credit

Dec 31, Year 3