Help Save & Ex Chec pany completed the following transactions and events involvi

Question

Help Save & Ex Chec pany completed the following transactions and events involving its delivery trucks Yoshi Com 2016 Jan. 1 Paid $23,515 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year 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 life and a $2,158 salvage value. Delivery truck costs are recorded in the Trucks account. from five to four years, and the estimated salvage value was increased to $2,850. 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 $5,600 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. Prev 2of 4H Next >

Explanation / Answer

1 Total cost 25300 Less Accumulated depreciation for 2016 4630 (25300-2150)/5 Book value 20670 Less Revised salvage value 2850 Remaining cost to be depreciated 17820 Years of life remaining 3 Total depreciation for 2017 5940 2 Total cost 25300 Depreciation expense 2016 4630 Depreciation expense 2017 5940 Depreciation expense 2018 5940 Accumulated depreciation on 31/12/2018 16510 Book value of truck at 12/31/2018 8790 Selling value 5600 Gain/ (loss) on sale -3190 (5600-8790) 3 01-Jan-16 Truck 25300 (23515+1785)             Cash 25300 31-Dec-16 Depreciation expense 4630             Accumulated depreciation truck 4630 31-Dec-17 Depreciation expense 5940             Accumulated depreciation truck 5940 31-Dec-18 Depreciation expense 5940             Accumulated depreciation truck 5940 31-Dec-18 Cash 5600 Accumulated depreciation truck 16510 Loss on sale of asset 3190                Truck 25300

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.