Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors to have a useful life of 6 years and a residual value of $5,000. One of the tractors has not performed as expected, so Javlin sold the tractor after 2 years fir $18,000. Javlin sold the remaining tractors for $5,000 at the end of the 6 years. Javlin uses group depreciation on a straight-line basis. Required: a. Prepare the journal entry for the purchase. b. Prepare the journal entry for the first and second year's depreciation. c. Record the journal entry for the disposal of the tractor. d. Record the journal entry for the third year's depreciation

Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors to have a useful life of 6 years and a residual value of $5,000. One of the tractors has not performed as expected, so Javlin sold the tractor after 2 years fir $18,000. Javlin sold the remaining tractors for $5,000 at the end of the 6 years. Javlin uses group depreciation on a straight-line basis. Required: a. Prepare the journal entry for the purchase. b. Prepare the journal entry for the first and second year's depreciation. c. Record the journal entry for the disposal of the tractor. d. Record the journal entry for the third year's depreciation

Name: Javlin Farms purchased three new tractors for $25,000 each. Javlin ex
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Description: Javlin Farms purchased three new tractors for $25,000 each. Javlin expects the tractors tohave a useful life of 6 years and a residual value of $5,000. One of the tractors has notperformed as expected, so Javlin sold the tractor after 2 years fir $1

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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