Solution-a | Depreciation for year2017: |
This is a problem of change in estimate and if there is a change in estimate then it would be taken prospectively and not recorded for past diffrence | |
Depreciation for 2016: | |
Original Cost-Salvage Value)/Life of the Asset | |
Here: | |
Original Cost=($23515+$1785)=$25300 | |
Salvage Value=$2150 | |
Dep 2016=($25300-$2150)/5=$4630 | |
Depreciation for 2017: | |
Book Value on Jan-2017=($25300-$4630)=$20670 | |
Salvage Value=$2550 | |
Life of the Asset=4 years | |
Remaining Life of the Asset=(4-1)=3 Years | |
Dep-2017=($20670-$2550)/3=6040$ |
Solution-b | Dep 2016=($25300-$2150)/5=$4630 |
Dep-2017=($20670-$2550)/3=6040$ | |
Depreciation for 2018=$6040(Due to SLM ) | |
Book Value on Dec 2018: | |
($25300-$4630-$6040-$6040)=$8590 | |
Sold For $5400 | |
Los on Sale of Truck=($8590-$5400)=$3190 |
Solution-c | Journal Entries | Amount in $ | |
Date | Particular | Amount(Dr) | Amount(Cr) |
1/1/2016 | Truck A/c Dr | 25300 | |
To Cash A/c | 25300 | ||
Being Truck Purchased in Cash | |||
31/12/2016 | Depreciation A/c Dr | 4630 | |
To Accumulated Depreciation A/c | 4630 | ||
Being Depreciation charged | |||
31/12/2017 | Depreciation A/c Dr | 6040 | |
To Accumulated Depreciation A/c | 6040 | ||
Being Depreciation charged | |||
31/12/2018 | Depreciation A/c Dr | 6040 | |
To Accumulated Depreciation A/c | 6040 | ||
Being Depreciation charged | |||
31/12/2018 | Cash A/c Dr | 5400 | |
Loss on Sale of Truck Dr | 3190 | ||
Accumulated Depreciation A/c Dr | 16710 | ||
To Truck A/c | 25300 | ||
Being Truck Sold for$5400 |
Yoshi Company completed the following transactions and events involving its delivery trucks. 2016 Jan. 1 Paid...
Yoshi Company completed the following transactions and events
involving its delivery trucks.
2016
Jan.
1
Paid $23,515 cash plus $1,785 in sales tax for a new delivery
truck estimated to have a five-year life and a $2,000 salvage
value. Delivery truck costs are recorded in the Trucks
account.
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 four...
Yoshi Company completed the following transactions and events involving its delivery trucks. 2017 Jan. 1 Paid $23,515 cash plus $1,635 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 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...
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...
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-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. 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 four...
Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $25,015 cash plus $1,935 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 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 truck's estimated useful life was changed from five to four years, and the estimated salvage value was...
Yoshi Company completed the following transactions and events involving its delivery trucks. 1.42 points Year 1 Jan. 1 Paid $23,515 cash plus $1,635 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 truck's estimated useful life was changed from five to four years, and the estimated salvage...
Yoshi Company completed the following transactions and events involving its delivery trucks Year 1 Jan. 1 Poid $22,015 cash plus $1,785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 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 truck's estimated useful life was changed from five to four years, and the estimated salvage value was...
Chech Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $23,515 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 truck's estimated useful life was changed from five to four years, and the estimated salvage value...
Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $25,015 cash plus $1,935 in sales tax for a new delivery truck estimated to have a five-year life and a $2,150 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 truck's estimated useful life was changed from five to four years, and the estimated salvage value was...
Chen Company completed the following transactions and events involving its delivery trucks 2014 Jan. 1 Paid $20,515 cash plus $1.785 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 residual value Delivery truck costs are recorded in the Trucks account Dec 31 Recorded annual straight-line depreciation on the truck 2015 Dec. 31 Due to new information obtained earlier in the year, the truck's estimated useful life was changed from five to four...