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Required: 1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale.

Required: 1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale.

FINANCIAL ACCOUNTING
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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On July 1, 2019, Farm Fresh Industries purchased a specialized delivery truck for $324,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $36,000. On March 1, 2024, the truck was sold for $146,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Req 3 Journal entry worksheet < 1 2 Record the depreciation in 2024. Event 1 Note: Enter debits before credits. General Journal Debit Credit >
Transcribed Image Text:On July 1, 2019, Farm Fresh Industries purchased a specialized delivery truck for $324,000. At the time, Farm Fresh estimated the truck to have a useful life of eight years and a residual value of $36,000. On March 1, 2024, the truck was sold for $146,000. Farm Fresh uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Required: 1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Req 3 Journal entry worksheet < 1 2 Record the depreciation in 2024. Event 1 Note: Enter debits before credits. General Journal Debit Credit >
1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Req 3 Journal entry worksheet 1 Record the sale of the truck for $170,000. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal
Transcribed Image Text:1. Prepare the journal entry to update depreciation in 2024. 2. Prepare the journal entry to record the sale of the truck. 3. Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Complete this question by entering your answers in the tabs below. Req 1 and 2 Assuming that the truck was instead sold for $170,000, prepare the journal entry to record the sale. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Req 3 Journal entry worksheet 1 Record the sale of the truck for $170,000. Note: Enter debits before credits. Event 1 Record entry General Journal Clear entry Debit Credit View general journal
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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