On July 1, 2017, Soner Co. purchased a delivery truck for $324,000. At the time, the...

Transcribed Image Text:

On July 1, 2017, Soner Co. purchased a delivery truck for $324,000. At the time, the truck was estimated to have a useful life of eight years and a residual value of $36,000. On March 1, 2022, the truck was sold for $146,000. The straight-line depreciation method was used. Partial-year depreciation is calculated based on the number of months the asset is in service. [HINT: Notice that the truck was used for less than 12 months in the year it was acquired (2017) and in the year it was sold (2022). Required: 1. Prepare the journal entry to update depreciation in 2022. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entries to update depreciation in 2022 and record the sale of the truck. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet > Record the depreciation in 2022. Note: Enter debits before.credits Event General Journal Debit Credit On July 1, 2017, Soner Co. purchased a delivery truck for $324,000. At the time, the truck was estimated to have a useful life of eight years and a residual value of $36,000. On March 1, 2022, the truck was sold for $146,000. The straight-line depreciation method was used. Partial-year depreciation is calculated based on the number of months the asset is in service. [HINT: Notice that the truck was used for less than 12 months in the year it was acquired (2017) and in the year it was sold (2022). Required: 1. Prepare the journal entry to update depreciation in 2022. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Reg 1 and 2 Reg 3 Prepare the journal entries to update depreciation in 2022 and record the sale of the truck. (If no entry is required for a transaction/event, select "No Journal entry required" in the first account field.) View transaction list Journal entry worksheet > Record the depreciation in 2022. Note: Enter debits before.credits Event General Journal Debit Credit

Answer rating: 100% (QA)

1 Depreciation expense 324000 36000 8 288000 8 36000 for full year Depreciation for 2 ... View the full answer