Business Accounting Assignments and Solutions | Desklib

Business Accounting
Assignment
Student Name
[Pick the date]

Question BE 10-2
Expenditures in regards to purchase the truck
Cash price = $30,000
Accident insurance = $2,000
Sale taxes = $2,100
Motor vehicle license = $100
Painting and lettering = $400
Cost of truck =?
Cost of truck ¿ ∑ (Cash price+¿ Sale taxes+ Painting∧lettering )¿
¿ 30,000+2,100+ 400
¿ $ 32,500
Hence, the cost of truck would be $32,500.
Question BE 10- 3
Flaherty Company’s journal entries for the two transactions are shown below:
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Question BE 10-4
Depreciation through straight line method
Straight depreciation = (38000-6000)/4 = $ 8000 per year
Question BE 10-6
Depreciation through double declining method
Straight line depreciation rate = 100 / 4 = 25%
Double decline rate = 2*25% = 50%
First year depreciation = $38000*50% = $19,000
Second year depreciation = $19000*50% = $9,500
Question BE 10-7
Depreciation rate = (39500-500)/150000 = 0.26 per mile
First year depreciation = $30000*0.26 = $7,800
Second year depreciation = $20000*0.26 = $5,200
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