Nov. 2 Paid garage $675 for miscellaneous repairs to the truck. Dec. 31 Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $5,000 for the truck. Year 2 Purchased a new truck for $48,000, paying cash. Jan. 6 Apr. 1 Sold the used truck purchased on Jan. 4 of Year 1 for $15,000. (Record depreciation to date in Year 2 for the truck.) Paid garage $450 for miscellaneous repairs to the truck. June 11 Dec. 31 Record depreciation for the new truck. It has an estimated residual value of $9,000 and an estimated life of five years. Year 3 July 1 Purchased a new truck for $54,000, paying cash. Oct. 2 Sold the truck purchased January 6, Year 2, for $16,750. (Record depreciation to date for Year 3 for the truck.) Dec. 31 Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $12,000 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.
Nov. 2 Paid garage $675 for miscellaneous repairs to the truck. Dec. 31 Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with a residual value of $5,000 for the truck. Year 2 Purchased a new truck for $48,000, paying cash. Jan. 6 Apr. 1 Sold the used truck purchased on Jan. 4 of Year 1 for $15,000. (Record depreciation to date in Year 2 for the truck.) Paid garage $450 for miscellaneous repairs to the truck. June 11 Dec. 31 Record depreciation for the new truck. It has an estimated residual value of $9,000 and an estimated life of five years. Year 3 July 1 Purchased a new truck for $54,000, paying cash. Oct. 2 Sold the truck purchased January 6, Year 2, for $16,750. (Record depreciation to date for Year 3 for the truck.) Dec. 31 Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value of $12,000 and an estimated useful life of eight years. Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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i have tried to get this problem correct but i am getting confused with the dates and how to write it in the journal
Transcribed Image Text:Nov. 2
Paid garage $675 for miscellaneous repairs to the truck.
Dec. 31
Recorded depreciation on the truck for the year. The estimated useful life of the truck is four years, with
a residual value of $5,000 for the truck.
Year 2
Purchased a new truck for $48,000, paying cash.
Jan. 6
Apr. 1
Sold the used truck purchased on Jan. 4 of Year 1 for $15,000. (Record depreciation to date in Year 2
for the truck.)
Paid garage $450 for miscellaneous repairs to the truck.
June 11
Dec. 31
Record depreciation for the new truck. It has an estimated residual value of $9,000 and an estimated
life of five years.
Year 3
July 1
Purchased a new truck for $54,000, paying cash.
Oct. 2
Sold the truck purchased January 6, Year 2, for $16,750. (Record depreciation to date for Year 3 for the
truck.)
Dec. 31
Recorded depreciation on the remaining truck purchased on July 1. It has an estimated residual value
of $12,000 and an estimated useful life of eight years.
Journalize the transactions and the adjusting entries. Refer to the Chart of Accounts for exact wording of account titles.
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