The Delivery Vehicles Account in the Ledger of Transit Co

question 46

Multiple Choice

The Delivery Vehicles account in the ledger of Transit Co. has a balance of $55 000 which is the cost of two second-hand trucks purchased on 1 July 2017. The Accumulated Depreciation - Delivery Vehicles account has a balance on 30 June 2020, before adjusting entries, of $20 000. No additional delivery trucks have been acquired or
Sold. The residual value of each truck is estimated to be $2500 and the straight-line depreciation method is used. What is the necessary adjusting entry to record annual depreciation on 30 June 2020?

• A) DR Depreciation expense $5 000; CR Delivery vehicles $5 000
• B) DR Accumulated depreciation $10 000; CR Delivery vehicles $10 000
• C) DR Depreciation expense $5 000; CR Cash at bank $5 000
• D) DR Depreciation expense $10 000; CR Accumulated depreciation $10 000

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Definitions:

Flange

An external or internal ridge or rim, often used for strength, guiding, or attachment to another object, such as in piping or the components of an enteral feeding tube.

Angle Of The Jaw

The angular area on either side of the face where the jawbone bends upwards towards the ear.

Endotracheal Tube

A flexible tube inserted through the mouth or nose into the trachea to maintain an open airway and deliver oxygen.

Head Tilt-chin Lift

A technique used in first aid to open the airway of an unconscious person by tilting the head back and lifting the chin.