Question

Answer the following questions regarding this problem. Don't use $ in the answers.  

Jay Company purchased a delivery truck for $67,000 on January 1, 2018. The truck has an expected salvage value of $3,000 and is expected to be driven 110,000 miles over its estimated useful life of 8 years. Actual miles driven were 14,000 in 2018 and 12,000 in 2019 and 4,000 in 2020. The delivery truck is then sold on July 1, 2020 for $50,000 cash.

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Question 11 pts

Using straight-line method compute depreciation expense for 2018.

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Question 21 pts

Using straight-line method compute depreciation expense for 2019.

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Question 31 pts

Compute the accumulated depreciation for December 31, 2019 using the straight-line method.

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Question 41 pts

Compute the book value for December 31, 2019 using the straight-line method.

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Question 51 pts

Using double-declining balance method compute depreciation expense for 2018.

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Question 61 pts

Using double-declining balance method compute depreciation expense for 2019.

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Question 71 pts

Compute the accumulated depreciation for December 31, 2019 using the double-declining balance method.

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Question 81 pts

Compute the book value for December 31, 2019 using the double-declining balance method.

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Question 91 pts

Using units-of-activity method compute depreciation expense for 2018.

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Question 101 pts

Using units-of-activity method compute depreciation expense for 2019.

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Question 111 pts

Compute the accumulated depreciation for December 31, 2019 using the units-of-activity method.

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Question 121 pts

Compute the book value for December 31, 2019 using the units-of-activity method.

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Question 134 pts

Prepare the journal entry to record 2019 depreciation for the straight-line method.

List the account titles to be debited and credited and the amount for annual depreciation to be recorded December 31, 2019. List the debit first.

Dec 31, 2019
a

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Question 1484 pts

Journalize the two (2) necessary transactions for the $50,000 cash sale of the truck on July 1, 2020, if Jay Company used the straight-line method for depreciation. List the debits first for each transaction.

July 1, 2020
a
July 1, 2020
b
c
d

Answer 1

The answer for Question 11, 21, 31 and 41 is attached in below picture

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Question - 1 Answer Dep Lendas Straight line = $2000 cost of asset - Less: Salvage value = $ 67060 $ 3000 Cost for depreciation = $64000 life of asset = 8 years t $ 8000 Depreciation per yeao (64000) &years) Depreciation for 2018 Depreciation per year ² 88000 months of use = 12 months - Depreciation for 2018 – $8000 (8000 x 12m 1209

Queestion -21 Answer : $8000 Refer calculation for Queestion 11. Queestion - Ø 31 Answer : Accumulated dep for Dec 31, 2019 = $ 16000 - calculation: Depreciation fosi 2018 = $8000 Vc 2019 = $ 8000 Accumulated dep = $16000 Question - 41 Answer: Book value on Dec 31, 2019 : $51000 Calculation Cost of asset = 67000 - less: Accumulated dep = 16000 Book value in 2019 51,000