Crane Ltd purchased a delivery truck on July 1, 2024. The list price of the new...

 

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Crane Ltd purchased a delivery truck on July 1, 2024. The list price of the new truck was $86.000 Crane offered a used truck as a trade-in on the purchase. The used truck had been purchased for $41,000 and the accumulated depreciation to date of the exchange was $37,700. Crane looked up the fair value of the used truck on a local web site and found that its used truck had resale value of $5,300. The dealer offered a $7.200 trade-in allowance on the purchase of the new truck. The deal was concluded and Crane paid $78,800 on the exchange. On November 112024, a set of snow tires were purchased for $1,100. On December 31, 2024, the company's year-end, Crane recorded depreciation using the straight-line method, using an estimated useful life of 6 years and an estimated residual value of $6.100. On January 2, 2025, an inexperienced driver had an accident and totally destroyed the truck. The insurance company paid Crane $75,900 for the truck. a b. id Record the transaction on July 1, 2024 Record the transaction on November 1, 2024. Record the adjusting entry on December 31, 2024. Record the transaction on January 2, 2025. Crane Ltd purchased a delivery truck on July 1, 2024. The list price of the new truck was $86.000 Crane offered a used truck as a trade-in on the purchase. The used truck had been purchased for $41,000 and the accumulated depreciation to date of the exchange was $37,700. Crane looked up the fair value of the used truck on a local web site and found that its used truck had resale value of $5,300. The dealer offered a $7.200 trade-in allowance on the purchase of the new truck. The deal was concluded and Crane paid $78,800 on the exchange. On November 112024, a set of snow tires were purchased for $1,100. On December 31, 2024, the company's year-end, Crane recorded depreciation using the straight-line method, using an estimated useful life of 6 years and an estimated residual value of $6.100. On January 2, 2025, an inexperienced driver had an accident and totally destroyed the truck. The insurance company paid Crane $75,900 for the truck. a b. id Record the transaction on July 1, 2024 Record the transaction on November 1, 2024. Record the adjusting entry on December 31, 2024. Record the transaction on January 2, 2025.

Answer rating: 100% (QA)

a July 1 2024 Debit Cash 78800 Credit Delivery Truck 86000 Credit Accumu... View the full answer