In the recent years, PT Angus has purchased three delivery trucks. Because of frequent employee turnover...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
In the recent years, PT Angus has purchased three delivery trucks. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method of each delivery truck, and various methods have been used. Information concerning the delivery trucks is summarized in the table below. Useful Life Delivery Truck Acquired Cost Salvage Depreciation Value (in years) Method July 1, 2012 January 1, 2013 $ 10,000 $ 7,500 $125,000 Straight-line Double declining- A 10 В $ 95,000 5 balance January 1, 2013 $ 96,000 $ 6,000 Units -of-activity 5 For the delivery truck nomor C, the truck is expected to be driven 150,000 miles. Actual miles of use in the first 3 years were: 2013: 2,800, 2014: 3,200; 2015: 3,300. Required: 1. Prepare journal entries for purchasing those delivery trucks in cash. 2. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. 3. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. 4. Year Book Value Depreciation Annual Accumulated Book Value Beginning Rate Depreciation Depreciation Ending Expense In the recent years, PT Angus has purchased three delivery trucks. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method of each delivery truck, and various methods have been used. Information concerning the delivery trucks is summarized in the table below. Useful Life Delivery Truck Acquired Cost Salvage Depreciation Value (in years) Method July 1, 2012 January 1, 2013 $ 10,000 $ 7,500 $125,000 Straight-line Double declining- A 10 В $ 95,000 5 balance January 1, 2013 $ 96,000 $ 6,000 Units -of-activity 5 For the delivery truck nomor C, the truck is expected to be driven 150,000 miles. Actual miles of use in the first 3 years were: 2013: 2,800, 2014: 3,200; 2015: 3,300. Required: 1. Prepare journal entries for purchasing those delivery trucks in cash. 2. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. 3. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. 4. Year Book Value Depreciation Annual Accumulated Book Value Beginning Rate Depreciation Depreciation Ending Expense
Expert Answer:
Answer rating: 100% (QA)
1 1 July 2012 Dr Truck A ac 125000 Cr Cash ac 125000 1 January 2013 ... View the full answer
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025372
4th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these finance questions
-
Prepare journal entries for ABC Co.s following events. 05/12/08 Received charter authorizing ABC Co. to issue 10,000 shares of common stock at a par value of $3 per share. 06/03/08 Issued 6,000...
-
Prepare journal entries for the following four events (use straight-line amortization). 01/01/07 The Def Co. issued $100,000, five year bonds, carrying a coupon rate of ten percent (10%), interest...
-
Prepare journal entries for the following transactions that occurred during July: 201X July 1 Jodi Wills invested $90,000 cash and $11,000 of equipment into her new business. 3 Purchased building for...
-
= 0.5. The p.d.f. for the waiting time X until an event occurs often follows the exponential distribution (to be studied in Section 7.6), with the form g(x) = e-x for some positive value of , defined...
-
Caitlin and Wally formed the C & W Partnership on September 20, 2015. Caitlin contributed cash of $195,000, and Wally contributed office furniture with a FMV of $66,000. He bought the furniture for...
-
What is restructuring? When thinking about restructuring, what three common elements should managers focus on to ensure that a successful restructuring takes place?
-
What is the annual energy demand for a building in Denver, Colorado, if the peak heat load is \(150,000 \mathrm{Btu} / \mathrm{h}\) based on a design temperature difference of \(75^{\circ}...
-
Blink-On Company maintains and repairs warning lights, such as those found on radio towers and lighthouses. Blink-On Company prepared the end-of-period spreadsheet (work sheet) at the top of the...
-
There are factors inside of a country that impacts HRM, as well as factors outside of a country that can impact HRM. For example, the laws of one country, in terms of labor union membership, can...
-
Data table Buckland Associates Bank Reconciliation Cash February 28, 2025 Bank: Beg. Bal 4,995 650 Feb. 3 Balance, February 28, 2025 4.707 Feb 6 600 2200 Feb. 12 Add Deposit in transit 2.200 Feb. 15...
-
Phosphoric acid reacts with magnesium hydroxide to produce magnesium phosphate and water via the following reaction: ?H3PO4 + ?Mg(OH)2->?Mg3(PO4)2 + ?H2O Balance the equation, then enter the...
-
Revisit the guidelines in this chapter for negotiating a job offer. Then, with the two classmates you worked with for Exercise 16, practice negotiating. Divide roles: the hiring manager, candidate,...
-
An engine runs on a rich mixture of methyl and ethyl alcohol and air. At a pressure of 1 bar and \(10^{\circ} \mathrm{C}\) the fuel is completely vapourised. Calculate the air-fuel ratio by volume...
-
A gas engine with a volumetric compression ratio of \(10: 1\) is run on a weak mixture of methane \(\left(\mathrm{CH}_{4} ight)\) and air, with \(\phi=0.9\). If the initial temperature and pressure...
-
One method of reducing the maximum temperature in an engine is to run with a rich mixture. A spark-ignition engine with a compression ratio of 10:1, operating on the Otto cycle, runs on a rich...
-
A gas engine is operated on a stoichiometric mixture of methane \(\left(\mathrm{CH}_{4} ight)\) and air. At the end of the compression stroke, the pressure and temperature are \(10 \mathrm{bar}\) and...
-
The following data refers to the most recent fiscal year for Sterritt Company. Amounts are in thousands of dollars. Cost of goods manufactured for the year Cost of goods sold Direct labor Direct...
-
What is EBIT/eps analysis? What information does it provide managers?
-
Incentive Corporation was organized in 2012 to operate a financial consulting business. The charter authorized the following capital stock: common stock, par value $4 per share, 12,000 shares. During...
-
Kohl's Corporation is a national retail department store. The company's total revenues for the year ended January 29, 2010, were $18 billion. J.C. Penney is a similar size department store company...
-
As of July 31, 2011, Krispy Kreme Doughnuts had $230,000 of Notes Receivable due before July 31, 2012, $21,646,000 of Accounts Receivable, and $1,307,000 in its Allowance for Doubtful Accounts (all...
-
Tesco plc is one of the worlds largest food retailers. Fiscal year 2014 (the year ended February 28, 2015) was a rocky year for the retailer. The companys sales and margins had come under pressure as...
-
Exhibit P2 displays a selected set of financial ratios for the years 20152017 of three fashion retailers: USbased Gap, UK-based Next, and Japan-based Uniqlo (Fast Retailing). Using this set of...
-
In 2009, following the worldwide credit crisis, several US-based car manufacturers, such as Chrysler and General Motors, approached bankruptcy and needed to be bailed out by the US government and...
Study smarter with the SolutionInn App