In Class Assignment - Chapter 7 Jones Company has an annual accounting period. Jones purchases a delivery van for $23,500. Jones estimates an eight-year service life and a residual value of $2,500. During the eight year period, the company expects to drive the van 105,000 miles. The actual miles driven each year were as follows: Year 1: 12,000 miles Year 2: 13,000 miles Year 3: 11,000 miles Year 4: 12,500 miles Year 5: 16,000 miles Year 6: 25,000 miles Year 7: 15,500 miles 1. Record the adjusting journal entry for the van in year 3 using the straight line depreciation method. 2. What is the balance in the accumulated depreciation account at the end of year 4 using the straight line depreciation method? 3. Record the adjusting journal entry for the van in year 2 using the double declining balance method. 4. What is the book value of the van at the end of year 2 using the double declining balance method? 5. Record the adjusting journal entry for the van in year 1 using the activity based method. 6. What is the book value of the van at the end of year 3 using the activity based method? 7. Jones Company decides to sell the asset at the end of year 2. The depreciation has been recorded using the straight line method. Record the sale of the van if Jones finds a buyer who will pay $15,000