On January 1,2012,a Company Buys a Truck for $42,000 Cash $\quad$

question 74

Essay

On January 1,2012,a company buys a truck for $42,000 cash.It has estimated residual value of $2,000,and an estimated life of 4 years,or 200,000 miles.Assume the company uses straight-line depreciation.Please complete the depreciation schedule below. $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Depreciation for the Year }$
$\begin{array}{|c|c|c|c|c|c|c}\hline \text { Date } & \text { Asset Cost } & \begin{array}{c}\text { Depreciable } \\\text { Cost }\end{array} & \begin{array}{c}\text { Depreciation } \\\text { Rate }\end{array} & \begin{array}{c}\text { Depreciation } \\\text { Expense }\end{array} & \begin{array}{c}\text { Accumulated } \\\text { Depreciation }\end{array} & \begin{array}{c}\text { Book } \\\text { Value }\end{array} \\\hline 1-1-2012 \\\hline 12-31-2012 \\\hline 12-31-2013 \\\hline 12-31-2014 \\\hline 12-31-2015 \\\hline\end{array}$

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Definitions:

Journal Entry

A record in accounting that represents a transaction in the general ledger, where each transaction is recorded with both a debit and a credit.

Posting References

The notations used in accounting to link journal entries to the corresponding ledger accounts, facilitating tracking and auditing.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that the total debits equal the total credits in the financial statements.

Erroneous Amount

An incorrect or mistaken quantity or figure in financial or data reports.