Journal Entry-1-PT Agrees | |||
Date | Account Tittle | Debit | Credit |
2012 | |||
1-Jul | Delivery Truck- A | $115,000.00 | |
Cash | $115,000.00 | ||
TO Record Purchase of Truck | |||
2013 | |||
1-Jan | Delivery Truck- B | $95,000.00 | |
Delivery Truck-C | $106,000.00 | ||
Cash | $201,000.00 | ||
TO Record Purchase of Truck |
2. Computation of Depreciation Expense |
For Truck -A |
SLM= (Cost- Residual Value)Useful Life |
(115000-10000)/10=$10500 |
For Truck -B |
DDb= (Cost/(Useful Life)X2 |
=(95000/5)*2= $38000 |
For Truck -C |
Depreciation=( (Cost- Rsidual Value)/ Total Expected Activity )* Activity Used |
=((106000-6000)/150000)* 2800= $1867 |
Journal Entry-3 | |||||
Date | Account Tittle | Debit | Credit | ||
31-Dec | Depreciation Expense -Truck A | $10,500.00 | |||
Depreciation Expense -Truck B | $38,000.00 | ||||
Depreciation Expense -Truck C | $1,867.00 | ||||
Accumulated Depreciation | $50,367.00 | ||||
To Record Depreciation Expense |
4. - Truck A | |||||
Year | Original Cost | Depreciable Value | Depreciation Expense | Accumulated Depreciation | Ending Book Value |
2012 | 115,000.00 | 105,000.00 | 5,250.00 | 5,250.00 | 109,750.00 |
2013 | 115,000.00 | 105,000.00 | 10,500.00 | 15,750.00 | 99,250.00 |
2014 | 115,000.00 | 105,000.00 | 10,500.00 | 26,250.00 | 88,750.00 |
2015 | 115,000.00 | 105,000.00 | 10,500.00 | 36,750.00 | 78,250.00 |
2016 | 115,000.00 | 105,000.00 | 10,500.00 | 47,250.00 | 67,750.00 |
2017 | 115,000.00 | 105,000.00 | 10,500.00 | 57,750.00 | 57,250.00 |
2018 | 115,000.00 | 105,000.00 | 10,500.00 | 68,250.00 | 46,750.00 |
2019 | 115,000.00 | 105,000.00 | 10,500.00 | 78,750.00 | 36,250.00 |
2020 | 115,000.00 | 105,000.00 | 10,500.00 | 89,250.00 | 25,750.00 |
2021 | 115,000.00 | 105,000.00 | 10,500.00 | 99,750.00 | 15,250.00 |
2022 | 115,000.00 | 105,000.00 | 5,250.00 | 105,000.00 | 10,000.00 |
In the recent years, PT Agrees has purchased three delivery trucks. Because of frequent employee turnover...
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