Speedy Delivery Service, Inc. has always rented their delivery truck. Speedy decided to replace the rented delivery truck by purchasing a new truck. The following are the facts for the new truck Speedy just purchased: March 1, 2021 $64,800 Date on which truck was purchased Purchase price Method of payment Estimated life Estimated value at the end of 6 years Depreciation method Cash 6 years Straight-Line The following is a partial list of the accounts in Speedy's General Ledger. These are the only accounts you need for this problem. D Cash D Truck (asset account) > Accumulated Depreciation - Truck D Depreciation Expense Prepare the General Journal entry to record the purchase of the new delivery truck on March 1, 2021. Calculate the amount of monthly depreciation for the new truck. Prepare the March 31 General Journal adjusting entry to record depreciation for the month. What would be the balance in the Accumulated Depreciation-Truck account after the 18th month's depreciation adjusting entry has been made? If Speedy had estimated that the life of the truck was 4 years, what would have been the amount of monthly depreciation?

Speedy Delivery Service, Inc. has always rented their delivery truck. Speedy decided to replace the rented delivery truck by purchasing a new truck. The following are the facts for the new truck Speedy just purchased: March 1, 2021 $64,800 Date on which truck was purchased Purchase price Method of payment Estimated life Estimated value at the end of 6 years Depreciation method Cash 6 years Straight-Line The following is a partial list of the accounts in Speedy's General Ledger. These are the only accounts you need for this problem. D Cash D Truck (asset account) > Accumulated Depreciation - Truck D Depreciation Expense Prepare the General Journal entry to record the purchase of the new delivery truck on March 1, 2021. Calculate the amount of monthly depreciation for the new truck. Prepare the March 31 General Journal adjusting entry to record depreciation for the month. What would be the balance in the Accumulated Depreciation-Truck account after the 18th month's depreciation adjusting entry has been made? If Speedy had estimated that the life of the truck was 4 years, what would have been the amount of monthly depreciation?

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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