During a three year period 5th Street Motel completed the

following
During a three-year period, 5th Street Motel completed the following transactions pertaining to
its pickup truck: Year 1 Jan. 11 Bought a used pickup truck for cash, $ 8,800. Nov. 16 Paid
garage for maintenance repairs to pickup truck, $ 273. Dec. 31 Recorded the adjusting entry for
depreciation for the fiscal year, using the straight-line method of depreciation. The estimated life
of the pickup truck is four years, and it has an estimated trade-in value of $ 2,200. 31 Closed
the expense accounts to the Income Summary account. Year 2 Mar. 4 Paid garage for tune-up
and minor repairs, $ 88. May 27 Bought a tire for the truck, $ 105. Dec. 31 Recorded the
adjusting entry for depreciation for the fiscal year. 31 Closed the expense accounts to the
Income Summary account. Year 3Feb. 13 Paid garage for maintenance repairs to pickup truck,
$ 436. June 22 Traded in the pickup truck for another pickup truck priced at $ 9,460, receiving a
trade-in allowance of $ 1,040 and paying the difference in cash. Recorded the entry to
depreciate the old truck to date. Made the entry to record the exchange assuming that the
exchange has “commercial substance.” Dec. 31 Recorded the adjusting entry for depreciation
of the new pickup truck for the fiscal year, using the straight-line method of depreciation. The
estimated life of the new truck is six years, and it has an estimated trade-in value of $ 2,500. 31
Closed the expense accounts to the Income Summary account.Required 1. Record the
transactions in general journal form, pages 97 and 98. 2. After journalizing each entry, post to
the following ledger accounts: Truck, No. 131; Accumulated Depreciation, Truck, No. 132; Truck
Repair Expense, No. 519; Depreciation Expense, Truck, No. 523; and Loss on Disposal of
Property and Equipment, No. 640.View Solution: During a three year period 5th Street Motel
completed the following
SOLUTION-- http://solutiondone.online/downloads/during-a-three-year-period-5th-street-motel-
completed-the-following/

Unlock answers here solutiondone.online