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.Required 1A Required 1B Required 1CCalculate depreciation for Year 2.Total costLess accumulated depreciation (from Year 1)Book valueLess revised salvage valueRemaining cost to be depreciatedYears of life remainingTotal depreciation for Year 2 Yoshi Company completed the following transactions and events involving itsdelivery trucks. Year 1 January 1 Paid $25,015 cash plus $1,485 in sales tax fora new delivery truck estimated to have a five-year life and a $2,450 salvagevalue. Delivery truck costs are recorded in the Trucks account. December 31Recorded annual straight - line depreciation on the truck. Year 2 December 31The truck's estimated useful life was changed from five to four years, and theestimated salvage value was increased to $2,700. Recorded annual straight-line depreciation on the truck. Year 3 December 31 Recorded annual straight-line depreciation on the truck. December 31 Sold the truck for $5,500 cash.Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value

Workings :Cost of the truck = Cash paid + sales tax = $25,015 +…

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.

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.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 4CE: Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the...

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Question

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.
Required 1A Required 1B Required 1C
Calculate depreciation for Year 2.
Total cost
Less accumulated depreciation (from Year 1)
Book value
Less revised salvage value
Remaining cost to be depreciated
Years of life remaining
Total depreciation for Year 2

Yoshi Company completed the following transactions and events involving its
delivery trucks. Year 1 January 1 Paid $25,015 cash plus $1,485 in sales tax for
a new delivery truck estimated to have a five-year life and a $2,450 salvage
value. Delivery truck costs are recorded in the Trucks account. December 31
Recorded annual straight - line depreciation on the truck. Year 2 December 31
The truck's estimated useful life was changed from five to four years, and the
estimated salvage value was increased to $2,700. Recorded annual straight-
line depreciation on the truck. Year 3 December 31 Recorded annual straight-
line depreciation on the truck. December 31 Sold the truck for $5,500 cash.
Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value

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Step 1: A) Calculate the depreciation for year 2

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Step 3: C) Prepare journal entries to record these transaction and events

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