anischeng
Apr 17, 2012, 02:54 PM
The following transactions, adjusting entries and closing entries wre completed by McHenry furniture Co. During a 3 year period. All are related to the use of delivery equipment. The double declining method of depreciation is used.
2010.
1/4) Purchased a used delivery truck for 54,000 paying cash.
2/24). Paid garage $275 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck.
12/31). Recorded depreciation on the truck for the fiscal year. The estimated useful like of the truck is eight years, with a residual value of $12,000 for the truck.
(I already now how to solve for 2010)
2011
1/3). Purchased a new truck for $60000 paying cash.
3/7). Paid garage $300 to tune the engine and make other minor repairs on the used truck.
4/30). Sold the used truck for $35000 (Record depreciation on date in 2011 for the truck)
12/31)/ Record depreciation for the new truck. It has an estimatd residual value of 16,000 and an estimated life of 10 years.
( I'm stuck on 4/30 12/31)
2012
7/1). Purchased a new truck for 64,000 paying cash.
10/7). Sold the truck purchased 1/3/2011, for 45000 (Record depreciation for the year)
12/31). Recorded depreciation on the remaining truck. It has an estimated residual value of 17,500 and an estimated useful life of 10 years.
(I think if you help me with 2011, I can solve 2012 by myself)
2010.
1/4) Purchased a used delivery truck for 54,000 paying cash.
2/24). Paid garage $275 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck.
12/31). Recorded depreciation on the truck for the fiscal year. The estimated useful like of the truck is eight years, with a residual value of $12,000 for the truck.
(I already now how to solve for 2010)
2011
1/3). Purchased a new truck for $60000 paying cash.
3/7). Paid garage $300 to tune the engine and make other minor repairs on the used truck.
4/30). Sold the used truck for $35000 (Record depreciation on date in 2011 for the truck)
12/31)/ Record depreciation for the new truck. It has an estimatd residual value of 16,000 and an estimated life of 10 years.
( I'm stuck on 4/30 12/31)
2012
7/1). Purchased a new truck for 64,000 paying cash.
10/7). Sold the truck purchased 1/3/2011, for 45000 (Record depreciation for the year)
12/31). Recorded depreciation on the remaining truck. It has an estimated residual value of 17,500 and an estimated useful life of 10 years.
(I think if you help me with 2011, I can solve 2012 by myself)