Computing and revising depreciation; selling plant assets LO2 LO4 LO6
Yoshi Company completed the following transactions and events involving its delivery trucks.
2009
Jan. 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a fiveyear
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.
2010
Dec. 31 Due to new information obtained at the beginning of the year, the truck’s estimated useful life
was changed from five to four years, and the estimated salvage value was increased to $2,400.
Recorded annual straight-line depreciation on the truck.
Check Dec. 31, 2010, Dr. Depr.
Expense—Trucks, $5,200
2011
Dec. 31 Recorded annual straight-line depreciation on the truck.
Dec. 31 Sold the truck for $5,300 cash.
Required
Prepare journal entries to record these transactions and events.
Dec. 31, 2011, Dr. Loss on
Disposal of Trucks, $2,300
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