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. Useful Life Delivery Truck Acquired Cost Salvage Depreciation Value (in years) Method July 1, 2012 January 1, 2013 $ 10,000 $ 7,500 $125,000 Straight-line Double declining- A 10 В $ 95,000 5 balance January 1, 2013 $ 96,000 $ 6,000 Units -of-activity 5 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: 1. Prepare journal entries for purchasing those delivery trucks in cash. 2. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. 3. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. 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. Useful Life Delivery Truck Acquired Cost Salvage Depreciation Value (in years) Method July 1, 2012 January 1, 2013 $ 10,000 $ 7,500 $125,000 Straight-line Double declining- A 10 В $ 95,000 5 balance January 1, 2013 $ 96,000 $ 6,000 Units -of-activity 5 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: 1. Prepare journal entries for purchasing those delivery trucks in cash. 2. Compute the amount of depreciation expense of each delivery truck per December 31, 2013. 3. Prepare journal entries for (2). Prepare the depreciation table for delivery truck B. 4. Year Book Value Depreciation Annual Accumulated Book Value Beginning Rate Depreciation Depreciation Ending Expense

Answer rating: 100% (QA)

1 1 July 2012 Dr Truck A ac 125000 Cr Cash ac 125000 1 January 2013 ... View the full answer