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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b8333b9-d7b4-4125-8a80-76b49df5ef99%2F5fcf0858-677b-4393-ba12-b962eb5c18ef%2F1zt1lz_processed.png&w=3840&q=75)
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0b8333b9-d7b4-4125-8a80-76b49df5ef99%2F5fcf0858-677b-4393-ba12-b962eb5c18ef%2F4c155ai_processed.png&w=3840&q=75)
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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