Yoshi Company completed the following transactions and events involving its delivery trucks. Year 1 Jan. 1 Paid $20,515 cash plus $1,485 in sales tax for a new delivery truck estimated to have a five-year life and a $2,000 salvage value. Delivery truck costs are recorded in the Trucks account. Dec. 31 Recorded annual straight-line depreciation on the truck. Year 2 Dec. 31 The truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $2,400. Recorded annual straight-line depreciation on the truck. Year 3 Dec. 31 Recorded annual straight-line depreciation on the truck. Dec. 31 Sold the truck for $5,300 cash. Required: 1-a. Calculate depreciation for Year 2. 1-b. Calculate book value and gain (loss) for sale of Truck on December 31, Year 3. 1-c. Prepare journal entries to record these transactions and events.

1a. Particulars                                                        Amount

Total cost                                                               $22,000

Less: Accumulated depreciation (from 2016)$4,000

Book value                                                             $18,000

Less Revised salvage value                                  $2,400

Remaining cost to be depreciated                       $15,600

/ Years of life remaining                                         3 years

Total depreciation for 2017                                  $5,200

1b. Particulars                                                Amount

Depreciation expense (for 2016)                 4,000

Depreciation expense (for 2017)                 5,200

Depreciation expense (for 2018)                 5,200

Accumulated depreciation 12/31/2018     14,400

Book value of truck at 12/31/2018

Total cost                                 22,000

Accumulated depreciation     (14,400)

Book value 12/31/2018            7,600

Truck sold                                5,300

Loss on sale of truck              2,300

2. Date    General Journal                                        Debit$          Credit$

2016    

Jan. 1       Trucks                                                       22,000

                       Cash                                                                        22,000

Dec. 31Depreciation expense-Trucks                 4,000

                    Accumulated depreciation-Trucks                           4,000

                    (22,000 - 2,000) / 5

2017    

Dec. 31   Depreciation expense-Trucks (Note 1)     5,200

                     Accumulated depreciation-Trucks                           5,200

2018    

Dec. 31   Depreciation expense-Trucks                 5,200  

                     Accumulated depreciation-Trucks                             5,200

Dec. 31   Cash                                                          5,300  

              Accumulated depreciation-Trucks         14,400

              Loss on disposal of trucks (Note 2)        2,300

                      Trucks                                                                         22,000

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1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know