Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
Yoshi Company completed the following transactions and events involving its delivery trucks.
2016
Jan.
1
Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account.
Dec.
31
Recorded annual straight-line depreciation on the truck.
2017
Dec.
31
Due to new information obtained earlier in the year, the truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,400. Recorded annual straight-line depreciation on the truck.
2018
Dec.
31
Recorded annual straight-line depreciation on the truck.
Dec.
31
Sold the truck for $5,300 cash.
Required:
1-a. Calculate depreciation for year 2017.1-b. Calculate book value and gain (loss) for sale of Truck on December, 2018.1-c. Prepare journal entries to record these transactions and events.
Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1
Jan.
1
Paid $23,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,300 salvage value. Delivery truck costs are recorded in the Trucks account.
Dec.
31
Recorded annual straight-line depreciation on the truck.
Year 2
Dec.
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
Dec.
31
Recorded annual straight-line depreciation on the truck.
Dec.
31
Sold the truck for $5,400 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.
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
Chapter 8 Solutions
Loose Leaf for Financial Accounting: Information for Decisions
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - Prob. 4DQCh. 8 - Prob. 5DQCh. 8 - Prob. 6DQCh. 8 - Prob. 7DQCh. 8 - Identify events that might lead to disposal of a...Ch. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 11DQCh. 8 - Prob. 12DQCh. 8 - Prob. 13DQCh. 8 - Prob. 14DQCh. 8 - Prob. 15DQCh. 8 - Prob. 16DQCh. 8 - Prob. 17DQCh. 8 - Prob. 18DQCh. 8 - Refer to the December 31, 2016, balance sheet of...Ch. 8 - Prob. 20DQCh. 8 - Prob. 1QSCh. 8 - Prob. 2QSCh. 8 - Prob. 3QSCh. 8 - Prob. 4QSCh. 8 - Prob. 5QSCh. 8 - Prob. 6QSCh. 8 - Prob. 7QSCh. 8 - Prob. 8QSCh. 8 - Prob. 9QSCh. 8 - Prob. 10QSCh. 8 - Identify the following assets a through i as...Ch. 8 - Prob. 12QSCh. 8 - Prob. 13QSCh. 8 - Caleb Co. owns a machine that costs $42,400 with...Ch. 8 - Prob. 15QSCh. 8 - Prob. 16QSCh. 8 - Prob. 1ECh. 8 - Prob. 2ECh. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Prob. 5ECh. 8 - Prob. 6ECh. 8 - Prob. 7ECh. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Prob. 13ECh. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19ECh. 8 - Prob. 20ECh. 8 - Prob. 21ECh. 8 - Prob. 22ECh. 8 - Prob. 23ECh. 8 - On January 2, 2018, Bering Co. disposes of a...Ch. 8 - Prob. 25ECh. 8 - Prob. 26ECh. 8 - Timberly Construction negotiates a lump-sum...Ch. 8 - Prob. 2PSACh. 8 - Prob. 3PSACh. 8 - Prob. 4PSACh. 8 - Prob. 5PSACh. 8 - Onslow Co. purchases a used machine for $178,000...Ch. 8 - Prob. 7PSACh. 8 - Prob. 8PSACh. 8 - Prob. 2PSBCh. 8 - Prob. 4PSBCh. 8 - Prob. 5PSBCh. 8 - Prob. 6PSBCh. 8 - Prob. 7PSBCh. 8 - Prob. 8PSBCh. 8 - Selected ledger account balances for Business...Ch. 8 - Prob. 3FSACh. 8 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Grandorf Company replaced the engine in a truck for 8,000 and expects the new engine will extend the life of the truck two years beyond the original estimated life. Related information is provided below. Cost of truck 65,000 Salvage value 5,000 Original estimated life 6 years The truck was purchased on January 1, 20-1. The engine was replaced on January 1, 20-6. Using straight-line depreciation, compute depreciation expense for 20-6.arrow_forwardMontello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.arrow_forwardMontello Inc. purchases a delivery truck for $25,000. The truck has a salvage value of $6,000 and is expected to be driven for ten years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.arrow_forward
- Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. Year 2 Dec. 31 The truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,400. Recorded annual straight-line depreciation on the truck. Year 3 Dec. 31 Recorded annual straight-line depreciation on the truck. 31 Sold the truck for $5,300 cash. Required Prepare journal entries to record these transactions and events.arrow_forwardYoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $22,015 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 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 $5,300 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.arrow_forwardCan I please get help with this practice question?7.11 Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 January 1 Paid $25,015 cash plus $1,635 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 $2,550. 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 $5,400 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. Required 1A Required 1B…arrow_forward
- Slotkin Products purchased a machine for $39,000 on July 1, 2014. The company intends to depreciate it over 8 years using the double-declining balance method. Salvage value is $3,000. Depreciation for 2015 to the closest dollar is A.$8,531 B.$19,500 C.$4,875 D. $7,500arrow_forwardYoshi 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 five-year life and a $2,000 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 $2,400. 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 $5,300 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.arrow_forwardLMN Company purchased factory equipment for $64,000 on January 1, 2016. The equipment is estimated to have a useful life of 12 years, at which point it will have a residual value of $4,000. LMN Company uses the straight-line method to account for depreciation. What is the journal entry on December 31, 2016 to record the yearly depreciation? Select one: a. Debit depreciation expense $5,000; Credit Equipment $5,000 b. Debit depreciation expense $5,333; Credit Accumulated depreciation: $5,333 c. Debit depreciation expense $5,000; Debit accumulated depreciation: $5,000 d. Debit depreciation expense $5,000; Credit Accumulated depreciation: $5,000arrow_forward
- Clarion Co. completed the following transactions and events involving the purchase and operation of equipment in its business. 2016 Paid $300,000 cash plus $30,000 in sales tax and $18,500 in transportation (FOB shipping point) for a new loader, which is estimated to have a four-year life and a $25,500 salvage value. Loader costs are recorded in the Machinery account. Paid $15,000 to enclose the cab and install air conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $1,500. Recorded double-declining balance depreciation on the loader. Jan. 1 Jan. 3 Dec. 31 2017 Jan. 1 Paid $50,400 to overhaul the loader's engine, which increased the loader's estimated useful life by two years. Paid $1,800 to repair the loader after the operator backed it into a tree. Recorded double-declining balance depreciation on the loader. Sold the loader for $250,000 cash. Feb. 17 Dec. 31 Dec. 31 REQUIRED: Prepare journal…arrow_forwardStarz service uses the straight-line method of depreciation. The company’s fiscal year-end is December 31. The following transactions occurred during 2022. January 1 Purchased equipment from the barre company on account for 12,500 plus sales tax of 1,125 and shipping cost of 225 May 13 Incurred 140 routine maintenance on the equipment. Dec 31 Recorded 2022 depreciation on the basis of 3-year life and estimated salvage value of $4,850 Prepare the necessary adjusting journal entries, show computations and explanations of the adjusting entries on the answer sheet. Dates Accounts debit Creditarrow_forwardWildhorse Company uses the straight-line method of depreciation. The company's fiscal year end is December 31. The following transactions occurred during 2025. Jan. 1 May 13 Dec. 31 Purchased equipment from the Indigo Company on account for $14,700 plus sales tax of $1,975 and shipping costs of $625. Paid for $540 routine maintenance on the equipment. Recorded 2025 depreciation on the basis of a 3-year life and estimated salvage value of $6,950. Prepare the necessary entries. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Creditarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Accounting for Derivatives_1.mp4; Author: DVRamanaXIMB;https://www.youtube.com/watch?v=kZky1jIiCN0;License: Standard Youtube License
Depreciation|(Concept and Methods); Author: easyCBSE commerce lectures;https://www.youtube.com/watch?v=w4lScJke6CA;License: Standard YouTube License, CC-BY