Q1. Eastman Company purchased a delivery truck for $35,000 on January 1, 2008. The truck was assigned an estimated useful life of 5 years and has a salvage value of $10,000. Record the yearly depreciation expense using the straight-line method.
Q2. Lester Company purchased a truck for $57,000. The company expected the truck to last four years with an estimated salvage value of $6,000. Compute the depreciation for the second year under the Double-declining-balance.
Q3. On January 1, 2010, Lakeside Enterprises purchased natural resources for $1,200,000. The company expects the resources to produce 12,000,000 units of product. If the company mined and sold 20,000 units in January, what is depletion expense entry for the month?
Q4. Crawford Enterprises sold equipment on January 1, 2010 for $5,000. The equipment had cost $24,000. The balance in Accumulated Depreciation at January 1 is $20,000. What entry would Crawford make to record the sale of the equipment?