Homework Help is Here – Start Your Trial Now!
Business
Accounting
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
See similar textbooks
icon
Related questions
Question

Don't give answer in image format 

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS