Reference no: EM13567057

Canyon Company has a used delivery truck that originally cost $27,200. Straight-line depreciation on the truck has been recorded for three years, with a $2,000 expected salvage value at the end of its estimated six-year useful life. The last depreciation entry was made at the end of last year . In April  of the current year, Canyon disposes of the truck. Prepare journal entries, in proper form, to record: a. Depreciation expense to date of disposal  b. Sale of the truck for cash at its book value c. Sale of the truck was for $15,000 cash d. Sale of the truck for $12,000 cash 5. Bax Corporation had the following transactions related to its delivery truck. Prepare journal entries, in proper form, to record the following transactions. a. Jan 1,

purchased a new truck for $14,300 cash with an estimated useful life of four years and a salvage value of $2,300. b. Dec 31, recorded depreciation on the truck for the year. 8. Mox, Inc. has the following payroll for March Officers' salaries $ 39,000 Sales salaries 65,000 Federal income taxes withheld 21,000 FICA taxes withheld 7,900 Health insurance premiums withheld 2,200 Salaries subject to FUTA 65,000 Salaries subject to state unemployment taxes 70,000 Prepare journal entries, in proper form, on March 31 to record: a. Accrual of the monthly payroll b. Payment of the net payroll 9. For each of the following situations, indicate: a. the type of liability , and b. the amount and account name that would be shown on the balance sheet of Jane, Inc. at December 31: a. Jane, Inc. has accounts payable of $110,000 for merchandise used in day to day activity b. Jane, Inc. agreed to purchase a $25,000 truck in the following January.