Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors to have a useful
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Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors to have a useful life of 6 years and a residual value of $5,000. One of the tractors has not performed as expected; therefore Javlin sold the tractor after 2 years for $18,000. Javlin sells the remaining tractors for $5,000 at the end of the 6 years. Javlin uses group depreciation on a straight-line basis. Prepare journal entries for each of the following:
Purchase of the asset.
The first and second year
Related Book For
Accounting
ISBN: 978-0324662962
23rd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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