Question

Yoshi Company completed the following transactions and events involving its delivery trucks. 2017 Jan. 1 Paid $23,515 cash plus $1,485 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. 2018 Dec. 31 Due to new information obtained earlier in the year, the truck's 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. 2019 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 2018. 1-b. Calculate book value and gain (loss) for sale of Truck on December, 2019. 1-c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Reg 1A Req 1B Req 10 Calculate depreciation for year 2018. Total cost Less accumulated depreciation (from 2017) Book value Less revised salvage value Remaining cost to be depreciated Years of life remaining Total depreciation for 2018 < Reg 1A Req 1B >

Answer 1

total cost					25000
less Accumulated depreciation (2017)					4540
book value					20460
less revised salvage value					2,850
remaining cost to be depreciated					17,610
years of life remaining					3
total depreciation for 2018					5870
Depreciation expense (for 2017)					4540
Depreciation expense (for 2018)					5870
Depreciation expense (for 2019)					5870
Accumulated depreciation 12/31/2019					16280
book value of truck at 12/31/2019					8720
total cost					25000
Accumulated deprecciation					16,280
book value 12/31/2019					8720
loss on sale of truck (8720-5600)					3120
no	Date	General Journal				Debit	Credit
1	1/1/2017	Trucks				25,000
		cash					25,000
2	12/31/2017	Depreciation expense				4,540
		Accumulated depreciation					4540
3	12/31/2018	Depreciation expense				5,870
		Accumulated depreciation					5,870
4	12/31/2019	Depreciation expense				5,870
		Accumulated depreciation					5,870
5	12/31/2019	Cash				5,600
		Accumulated depreciation				16,280
		loss on sale of truck				3,120
		Truck					25,000