Question 2 On January 1, 2020, Silver Mining purchased a red truck. The truck cost $1,000,000 and was straight-line depreciated over 5 years with no expected salvage value. On June 30, Silver traded-in the red truck for a new blue truck. The terms of the trade-in were as follows: Silver traded in the red truck (that was purchased on Jan 1 2020) along with $123,000. Silver acquired a new blue truck. The sticker price of the new truck is $850,000 The new Blue truck will be straight-line depreciated over 3.5 years with no expected salvage value. Required: Show all of the journal entries for 2020, (including all entries for depreciation expense)

Question 2 On January 1, 2020, Silver Mining purchased a red truck. The truck cost $1,000,000 and was straight-line depreciated over 5 years with no expected salvage value. On June 30, Silver traded-in the red truck for a new blue truck. The terms of the trade-in were as follows: Silver traded in the red truck (that was purchased on Jan 1 2020) along with $123,000. Silver acquired a new blue truck. The sticker price of the new truck is $850,000 The new Blue truck will be straight-line depreciated over 3.5 years with no expected salvage value. Required: Show all of the journal entries for 2020, (including all entries for depreciation expense)

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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