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)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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