In the recent years, PT Angus has purchased three delivery trucks. Because of frequent employee turnover...
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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. Delivery Acquired Cost Salvage Useful Life Depreciation Value (in years) Truck Method $ 10,000 $125,000 $ 95,000 A July 1, 2012 10 Straight-line Double declining- January 1, 2013 $ $ 7,500 balance C January 1, 2013 $ 96,000 $ 6,000 Units -of-activity 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: Prepare journal entries for purchasing those delivery trucks in cash. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. 1. 2. 3. 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. Delivery Acquired Cost Salvage Useful Life Depreciation Value (in years) Truck Method $ 10,000 $125,000 $ 95,000 A July 1, 2012 10 Straight-line Double declining- January 1, 2013 $ $ 7,500 balance C January 1, 2013 $ 96,000 $ 6,000 Units -of-activity 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: Prepare journal entries for purchasing those delivery trucks in cash. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. 1. 2. 3. 4. Year Book Value Depreciation Annual Accumulated Book Value Beginning Rate Depreciation Depreciation Ending Expense
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Req 1 Journal entries for Purchase of Delivery Trucks Date Accounts title and explanations Debit Cre... View the full answer
Related Book For
Probability & Statistics for Engineers & Scientists
ISBN: 978-0130415295
7th Edition
Authors: Ronald E. Walpole, Raymond H. Myers, Sharon L. Myers, Keying
Posted Date:
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