1) HeFlin Company acquires these expenditures in buying a truck: cash price $17,700; accident insurance (during use) $1,810; sales taxes $1,300; motor vehicle license $240; and painting and lettering $1,230.
Compute the cost of truck?
2 ) Apex Chemicals Company obtains a delivery truck at the cost of $23,800 on January 1, 2007. Truck is expected to have salvage value of $4,300 at end of its 5-year useful life. find out annual depreciation for first and second years using straight-line method.
3) Make journal entries to record these transactions: (For multiple debit/credit entries, prepare in order of magnitude.)
(a) Blaska Company retires its delivery equipment, that cost $44,200. Accumulated depreciation is also $44,200 on this delivery equipment. No salvage value is received.
(b) Suppose same information as in part (a), except that accumulated depreciation for Blaska Company is= $37,020 instead of $44,200.