Yoshi Company completed the following transactions and events involving its deli

Question

Yoshi Company completed the following transactions and events involving its delivery trucks 2016 Jan. 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five 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 year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. changed from five to four years, and the estimated salvage value was increased to $2,400. Re- corded annual straight-line depreciation on the truck. 2018 Recorded annual straight-line depreciation on the truck. Sold the truck for $5,300 cash. Dec. 31 31 Required Prepare journal entries to record these transactions and events

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Solution:-

Note 1:-

Note 2:-

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Date General journal Debit Credit 2016 Jan. 1 Trucks 22,000 Cash 22,000 Dec. 31 Depreciation expense—Trucks 4,000 Accumulated depreciation—Trucks 4,000 (22,000 - 2,000) / 5 2017 Dec. 31 Depreciation expense—Trucks (Note 1) 5,200 Accumulated depreciation—Trucks 5,200 2018 Dec. 31 Depreciation expense—Trucks 5,200 Accumulated depreciation—Trucks 5,200 Dec. 31 Cash 5,300 Accumulated depreciation—Trucks 14,400 Loss on disposal of trucks (Note 2) 2,300 Trucks 22,000

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