Equipment (estimated residual value, $8,100 ) $20,700 Accumulated depreciation (straight-line, three years) 6,300 On December 31 of the current year, the delivery truck was a total loss as the result of an accident. Required: 1. Based on the data given, compute the estimated useful life of the truck that was used for recording depreciation. 2. Prepare all journal entries with respect to the truck on December 31 of the current year, assuming there was no insurance coverage on the truck. 3. Assuming Khouri had casualty insurance on the truck and received $8,000 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Journal entry worksheet Note: Enter debits before credits
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Equipment (estimated residual value, $8,100 ) $20,700 Accumulated depreciation (straight-line, three years) 6,300 On December 31 of the current year, the delivery truck was a total loss as the result of an accident. Required: 1. Based on the data given, compute the estimated useful life of the truck that was used for recording depreciation. 2. Prepare all journal entries with respect to the truck on December 31 of the current year, assuming there was no insurance coverage on the truck. 3. Assuming Khouri had casualty insurance on the truck and received $8,000 from the insurance company for the accident, determine whether there was a gain or loss for the disposal and what the associated amount was. Journal entry worksheet Note: Enter debits before credits 