On January 2, 2019, Collins Company purchased a delivery truck for $45,000 cash. The truck had...
20 On January 2, 2015, a company purchased a delivery truck (Truck 1) for $45,000 cash. The truck had an estimated useful life of seven years and an estimated salvage value of $3,000. The straight-line method of depreciation has been used. Prepare the journal entries to record depreciation expense and the disposition of the truck on September 1, 2019, under each of the following assumptions. Show your work. 45our 42our (57164) 1. Record depreciation expense on Truck 1 for 2019....
On January 2, 2016, Flake Company purchased a truck for $140,000 cash. That truck has an estimated useful life of seven years and an estimated salvage value of $12,000. The straight-line method of depreciation is being used.Required: A. Prepare a schedule showing the calculation of the book value of the truck on December 31, 2019. B. Assume the truck is to be disposed of on May 1, 2020. Prepare the journal entry to record the depreciation for the four months ended April 30, 2020. C. Assuming...
Question 1 Cobalt Manufacturing purchased equipment and a delivery vehicle on January 1, 2019. The equipment cost $65,000 and has an estimated useful life of 8 years with a residual value of $9,000 The delivery vehicle cost $150,000 and has an estimated life of 4 years or 200,000 kilometres and a residual value of $14,000. The delivery truck is expected to be driven 35,000 and 40,000 kilometres in 2019 and 2020, respectively. Required 1. Cobalt has decided to depreciate the...
Chip Company owns one delivery truck, which it purchased on October 1, 2015, at a cost of $76,800. The estimated life of the truck at that time was four years. On June 30, 2018, the close of the fiscal year, the accumulated depreciation account had a balance of $52,800. On July 1, 2018, the company traded this vehicle for a new one having a cash price of $85,200. Cash of $67,200 was also exchanged for the new truck. The old...
QUESTION 2 On July 1, 2016, a company purchased a new delivery truck. The truck has a cost of $37,000, an estimated useful life of 5 years, and salvage value of $7,000. Assume that the company uses the double-declining balance method of depreciation, what is depreciation expense for 2019 OASO OB S 992 OC.$ 3,197 OD.$ 3,656 OE4,262
A Company bought a used delivery truck for $20,000 with an estimated useful life of 4 years. The company’s accountant estimated that the truck’s residual value would be $2,000 at the end of its useful life. Compute depreciation expense for the third year of the asset’s life using the double-declining balance method.
Norman Delivery Company purchased a new delivery truck for $72,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 18,000 miles in 2020. Norman computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $...
Bar Delivery Company purchased a new delivery truck for $65,400 on April 1, 2019. The truck is expected to have a service life of 5 years or 170,400 miles and a residual value of $3,120. The truck was driven 9,500 miles in 2019 and 11,900 miles in 2020. Bar computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $...
Question 1 (8 marks) Functional Manufacturing purchased equipment and a utility vehicle on January 1, 2019. The equipment cost $90,000 and has an estimated useful life of 8 years with a residual value of $15,000. The delivery vehicle cost $180,000 and has an estimated life of 5 years or 250,000 kilometres and a residual value of $17,000. The delivery truck is expected to be driven 25,000 and 35,000 kilometres in 2019 and 2020, respectively. . Required Functional has decided to...
Malone Delivery Company purchased a new delivery truck for $54,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 150,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 20,000 miles in 2020. Malone computes depreciation expense to the nearest whole month. Required: Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.) Straight-line method 2019 $...