Yoshi Company completed the following transactions and events involving its deli
ID: 2516380 • Letter: Y
Question
Yoshi Company completed the following transactions and events involving its delivery trucks 2016 Jan. 1 Paid $20,515 cash plus $1,935 in sales tax for a new delivery truck estimated to have a five-year ??fe and a Dec. 31 Recorded annual straight-line depreciation on the truck. 2017 Dec. 31 Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to $2,150 salvage value. Delivery truck costs are recorded in the Trucks account four years, and the estimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. 2018 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,400 cash Required: 1-a. Calculate depreciation for year 2017. 1-b. Calculate book value and gain (loss) for sale of Truck on December, 2018. 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 depreciation for year 2017Explanation / Answer
YOSHI COMPANY 2016 1. To record purchase of delivery truck Date Account Title Debit Credit Jan.1 Trucks 21450 Cash 21450 (Purchase of truck) 1. To record depreciation expense for the year in the truck Date Account Title Debit Credit Dec.31 Depreciation Expense 3860 Acumulated Depreciation - trucks 3860 (Depreciation for the year recorded) Cost of the truck 21450 Salvage Value 2150 Depreciable value 19300 Estimated Life - years 5 Annual depreciation 3860 2017 1. To record depreciation expense for the year in the truck Date Account Title Debit Credit Dec.31 Depreciation Expense 5515 Acumulated Depreciation - trucks 5515 (Depreciation for the year recorded) Cost of the truck 21450 Revised Salvage Value 2700 Depreciable value 18750 Estimated Life - years 4 Annual depreciation 4687.50 Depreciation for 2016 and 2017 (4687.50*2) 9375 Depreciation provided in 2016 3860 Depreciation charged for 2017 5515 2018 1. To record depreciation expense for the year in the truck Date Account Title Debit Credit Dec.31 Depreciation Expense 4688 Acumulated Depreciation - trucks 4688 (Sale of the truck recorded) 2. To record sale of the truck Date Account Title Debit Credit Dec.31 Cash 5400 Acumulated Depreciation - trucks 14063 Loss on sale of truck 1987 Truck 21450 (Depreciation for the year recorded)
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