On January 2, 2012, Cretien Corporation purchased a delivery truck for $40,000 cash. The company uses straight-
Question:
On January 2, 2012, Cretien Corporation purchased a delivery truck for $40,000 cash. The company uses straight- line depreciation and estimates that the truck will have a five-year useful life. The company has a December 31 year end and adjusts its accounts annually.
(a) Prepare the journal entry to record the purchase of the delivery truck on January 2, 2012.
(b) Prepare the adjusting entries required on December 31, 2012 and 2013.
(c) Indicate the statement of financial position presentation of the delivery truck at December 31, 2012 and 2013.
(d) Indicate the income statement presentation of the depreciation expense for the years ended December 31, 2012 and 2013
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
a Jan 2 Vehicles 40000 Cash 40000 b The journal entry for the yea...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
