Current Attempt in Progress Carla Vista Manufacturing has a December 31 year end and uses the straight-line method for depreciating its equipment and the double-diminishing-balance method for its trucks. Carla Vista began 2025 with a single piece of equipment that had been purchased on January 1, 2024, for $254,000 and a truck that had been purchased on January 1, 2023, for $158,000. When the equipment was purchased, Carla Vista's management had estimated that it would have a residual value of $14,000 and a useful life of 5 years. When the truck was purchased, management determined that it would have a useful life of 4 years and a residual value of $29,000. On November 21, 2025, Carla Vista sold the piece of equipment for $149,000 cash. The company purchased replacement equipment on November 26 for $426,400 cash. Carla Vista's management determined that the new piece of equipment would have a useful life of 4 years and a residual value of $28,000. Prepare all necessary journal entries for the year ended December 31, 2025. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation (To record depreciation expense) (To record sale of equipment) (To record depreciation expense on equipment) (To record depreciation expense on truck) Debit Credit
Current Attempt in Progress Carla Vista Manufacturing has a December 31 year end and uses the straight-line method for depreciating its equipment and the double-diminishing-balance method for its trucks. Carla Vista began 2025 with a single piece of equipment that had been purchased on January 1, 2024, for $254,000 and a truck that had been purchased on January 1, 2023, for $158,000. When the equipment was purchased, Carla Vista's management had estimated that it would have a residual value of $14,000 and a useful life of 5 years. When the truck was purchased, management determined that it would have a useful life of 4 years and a residual value of $29,000. On November 21, 2025, Carla Vista sold the piece of equipment for $149,000 cash. The company purchased replacement equipment on November 26 for $426,400 cash. Carla Vista's management determined that the new piece of equipment would have a useful life of 4 years and a residual value of $28,000. Prepare all necessary journal entries for the year ended December 31, 2025. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation (To record depreciation expense) (To record sale of equipment) (To record depreciation expense on equipment) (To record depreciation expense on truck) Debit Credit
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...
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Transcribed Image Text:Current Attempt in Progress
Carla Vista Manufacturing has a December 31 year end and uses the straight-line method for depreciating its equipment and the
double-diminishing-balance method for its trucks. Carla Vista began 2025 with a single piece of equipment that had been purchased
on January 1, 2024, for $254,000 and a truck that had been purchased on January 1, 2023, for $158,000. When the equipment was
purchased, Carla Vista's management had estimated that it would have a residual value of $14,000 and a useful life of 5 years. When
the truck was purchased, management determined that it would have a useful life of 4 years and a residual value of $29,000.
On November 21, 2025, Carla Vista sold the piece of equipment for $149,000 cash. The company purchased replacement equipment
on November 26 for $426,400 cash. Carla Vista's management determined that the new piece of equipment would have a useful life of
4 years and a residual value of $28,000.
Prepare all necessary journal entries for the year ended December 31, 2025. (Record entries in the order displayed in the problem
statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select
"No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
Date
Account Titles and Explanation
(To record depreciation expense)
(To record sale of equipment)
(To record depreciation expense on equipment)
(To record depreciation expense on truck)
Debit
Credit
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