Beckworth Company purchased a truck on January 1, 2018, at a cash cost of £58600. The estimated residual value was £1000 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly including the year of purchase and disposal. On July 1, 2021, the company sold the truck for £7,200 cash. Required 1) What was the depreciation expense amount per month? 2) What was the amount of accumulated depreciation at July 1, 2021? 3) Prepare the required journal entries on the date of disposal, July 1, 2021. (Assume no 2021 depreciation had yet been recorded)
Beckworth Company purchased a truck on January 1, 2018, at a cash cost of £58600. The estimated residual value was £1000 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly including the year of purchase and disposal. On July 1, 2021, the company sold the truck for £7,200 cash. Required 1) What was the depreciation expense amount per month? 2) What was the amount of accumulated depreciation at July 1, 2021? 3) Prepare the required journal entries on the date of disposal, July 1, 2021. (Assume no 2021 depreciation had yet been recorded)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
17
Transcribed Image Text:bank reconciliation.
B17 Beckworth Company purchased a truck on January 1, 2018, at a cash cost of £58600. The
estimated residual value was £1000 and the estimated useful life 4 years. The company uses
straight-line depreciation computed monthly including the year of purchase and disposal. On
July 1, 2021, the company sold the truck for £7,200 cash.
Required
1) What was the depreciation expense amount per month?
2) What was the amount of accumulated depreciation at July 1, 2021?
3) Prepare the required journal entries on the date of disposal, July 1, 2021. (Assume no 2021
depreciation had yet been recorded)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
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.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education