60.1K

Verified Solution

Link Copied!

help whats wrong. please correct the ones in red.

A.

Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a f ive-year 1 ife and a $2,000 salvage value. Delivery truck costs are recorded in the Trueks account. December 31 Recorded annual straight-1ine depreclation on the truck. Year 2 December 31 The truck's estimated useful life was changed from five to four years, and the estimated tlalvage value was inereased to $2,400. Recorded annual straight-1ine depreciation on the truek. Year 3 Decerber 31 Recorded annual straight-1ine depreciation on the truck. December 31 sold the truck for $5,300 cash. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events. Complete this question by entering your answers in the tabs below. Prepare journal entries to record these transactions and events. \begin{tabular}{|c|c|c|c|c|c|} \hline no & vate & venerar vou & & vern & Greait \\ \hline \multirow[t]{2}{*}{1} & January 01, Year 1 & Depreciation expense-Trucks & (2) & 22,000 & \\ \hline & & Cash & 0 & & 22,000 \\ \hline \multirow[t]{2}{*}{2} & December 31, Year & Depreciation expense-Equipment & & 4,0000 & \\ \hline & & Accumulated depletion & (2 & & 4,0000 \\ \hline \multirow[t]{2}{*}{3} & December 31, Year & at Depletion expense & (x) & 5,200 & \\ \hline & & Accumulated depreciation-Trucks & 0 & & 5,2000 \\ \hline \multirow[t]{2}{*}{4} & December 31, Year & ar Depletion expense & (2) & 5.300 & b \\ \hline & & Accumulated depreciation-Trucks & & & 14,400 \\ \hline \multirow{4}{*}{5} & December 31, Year & bar Cash & & 5.3000 & \\ \hline & & Accumulated depreciation-Trucks & 0 & 14,4000 & \\ \hline & & Loss on exchange of assets & & 2,3000 & \\ \hline & & Trucks & 0 & & 22,0000 \\ \hline \end{tabular} Required 1B

Answer & Explanation Solved by verified expert

See Answer