Mar 7 Paid garage 190 for changing the oil replacing the oil

Mar. 7. Paid garage $190 for changing the oil, replacing the oil filter, and tuning the engine on the delivery truck Dec. 31. Record depreciation for the new truck. It has an estimated trade-in value of $10,100 and an estimated life of 7 years Dec. 31. Recorded depreciation on the remaining truck. It has an estimated residual value of $15,100 and an estimated useful life of 10 years.

Solution

Date Particulars Debit Credit 8-Jan Truck $    48,600.00 Cash $    48,600.00 (Purchase of truck) 7-Mar Truck Repair Expenss $          190.00 Cash $          190.00 (expenses incurred) 31-Dec Depreciation A/c $    10,800.00 Acc. Depreciation A/c $    10,800.00 (depreciation recorded) 9-Jan Truck $    55,860.00 Cash $    55,860.00 (Purchase of truck) 28-Feb Truck Repair Expenss $          340.00 Cash $          340.00 (expenses incurred) 30-Apr Depreciation A/c $      1,800.00 Acc. Depreciation A/c $      1,800.00 (depreciation recorded) 30-Apr Cash A/c $    33,600.00 Acc. Depreciation A/c $    12,600.00 Loss on Sale of Truck $      2,400.00 Truck $    48,600.00 (record sale and recognized loss) 31-Dec Depreciation A/c $    15,960.00 Acc. Depreciation A/c $    15,960.00 (depreciation recorded) 1-Sep Truck $    84,000.00 Cash $    84,000.00 (Purchase of truck) 4-Sep Depreciation A/c $      6,650.00 Acc. Depreciation A/c $      6,650.00 (depreciation recorded) 4-Sep Cash A/c $    34,000.00 Acc. Depreciation A/c $    22,610.00 Gain on Sale of Truck $          750.00 Truck $    55,860.00 (record sale and recognized loss) 31-Dec Depreciation A/c $    16,800.00 Acc. Depreciation A/c $    16,800.00 (depreciation recorded)