Question $5(20$ marks$)$

Shula Company had the following transactions in Year $3$:

July $31-$Sold a delivery truck for $$25,000$ cash. The delivery truck originally cost

$$57,000$ and had accumulated depreciation of $$19,000$ on December $31,$ Year $2.$

Depreciation is calculated on a declining$-$balance basis using a rate of $30\%.$

August $31-$Equipment with a $4-$year useful life was purchased on January $1,$

Year $1,$ for $$15,000$ and was sold for $$9,000.$ The equipment had been

depreciated using the straight$-$line method with an estimated residual value

of $$3,000.$ Depreciation expense was last recorded on December $31,$ Year $2.$

Required

Prepare the appropriate journal entries based on the details provided. Use months re

your depreciation expense calculations. Please leave one empty row between each

journal entry.Shula Company had the following transactions in Year $3$:

$$ July $31$Sold a delivery truck for $$25,000$ cash. The delivery truck originally cost $$57,000$ and had accumulated depreciation of $$19,000$ on December $31,$ Year $2.$ Depreciation is calculated on a declining$-$balance basis using a rate of $30\%.$

$$ August $31$Equipment with a $4-$year useful life was purchased on January $1,$ Year $1,$ for $$15,000$ and was sold for $$9,000.$ The equipment had been depreciated using the straight$-$line method with an estimated residual value of $$3,000.$ Depreciation expense was last recorded on December $31,$ Year $2.$