A pharmacy acquired a delivery truck at a cost of $14,400. Estimated life of the truck is four years. Management of pharmacy elects to use the straight line method of depreciation for vehicles. 1. State the amount of depreciation expense per yare and per month. Give the adjusting entry to record depreciation on the truck at the end of the firms' month and explain where the accounts involved would appear in the financial statement. 2. Assume the delivery truck was acquired on sep1, 2018 and that this vehicle is the only delivery truck owned by the business. Show how this truck would be reported in pharmacy balance sheet at December 31 2018. 3. Compare the amount credited to aceumulated depreciation in the adjusting entry in (part a) to the accumulated depreciation reported on the balance e sheet at December 31 2018 (part b). are these two amount the same? Explain briefly?

A pharmacy acquired a delivery truck at a cost of $14,400. Estimated life of the truck is four years. Management of pharmacy elects to use the straight line method of depreciation for vehicles. 1. State the amount of depreciation expense per yare and per month. Give the adjusting entry to record depreciation on the truck at the end of the firms' month and explain where the accounts involved would appear in the financial statement. 2. Assume the delivery truck was acquired on sep1, 2018 and that this vehicle is the only delivery truck owned by the business. Show how this truck would be reported in pharmacy balance sheet at December 31 2018. 3. Compare the amount credited to aceumulated depreciation in the adjusting entry in (part a) to the accumulated depreciation reported on the balance e sheet at December 31 2018 (part b). are these two amount the same? Explain briefly?

Name: A pharmacy acquired a delivery truck at a cost of $14,400. Estimated
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Description: A pharmacy acquired a delivery truck at a cost of $14,400. Estimated life of thetruck is four years. Management of pharmacy elects to use the straight line methodof depreciation for vehicles.1. State the amount of depreciation expense per yare and p

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.36MCE: Depreciation Expense During 2016, Carter Company acquired three assets with the following costs,...

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