Chap10 Class Example6 Solution (student) 2010

Chap10 Class Example6 Solution (student) 2010 - Minor...

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Victor Leung 1 ACY1111 (2010) Chap10 Example 6 Class Example 6 Solution Prepare general journal entries to record the following transactions involving the purchase and operation of a second-hand truck: 2006 Jan. 2 Purchased for $46,400 cash a second-hand delivery truck with an estimated three- year remaining useful life and a $8,000 salvage value. Dr. Truck 46,400 Cr. Cash 46,400 4 Paid Auto Repair Company for the following (before putting the truck in use): Repairs to truck’s motor $2,500 New tires 1,100 Dr. Truck 3,600 Cr. Cash 3,600 Dec. 31 Recorded straight-line depreciation on the truck. Dr. Depreciation Expense--Truck 14,000 Cr. Accum. Depreciation-- Truck 14,000 2007 Jan. 10 Installed a hydraulic loader on the truck at a cost of $5,600. The loader increased the truck’s estimated salvage value to $10,000. Dr. Truck 5,600 Cr . Cash 5,600 Jun. 20 Paid Auto Repair Company for the following:
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Unformatted text preview: Minor repairs to truck’s motor $250 New battery 55 Gas and oil 250 Dr. Repairs Expense 555 Cr . Cash 555 Aug. 6 Paid $860 for repairs to the hydraulic loader damaged when the driver backed into a loading dock. Dr. Repairs Expense 860 Cr. Cash 860 Dec. 31 Recorded straight-line depreciation on the truck. Dr. Depreciation Expense--Truck 15,800 Cr. Accum. Depreciation--Truck 15,800 Victor Leung 2 ACY1111 (2010) Chap10 Example 6 2008 Jan. 8 Paid Auto Repair Company $4,200 to overhaul (major) the truck’s motor, that extending the truck’s life one year beyond the original three-year estimate. However, it was also estimated that the extra year’s operation would reduce the truck’s salvage value to $5,000. Dr . Truck 4,200 Cr. Cash 4,200 Dec. 31 Recorded straight-line depreciation on the truck. Dr. Depreciation Expense-- Truck 12,500 Cr. Accum. Depreciation--Truck 12,500...
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Chap10 Class Example6 Solution (student) 2010 - Minor...

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