Beckworth Company purchased a truck on January 1, 2013, at a cash cost of $10,600. The estimated residual value was $400 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 2016, the company sold the truck for $1,900 cash.
Required:
A. What was the depreciation expense amount per month?
B. What was the amount of accumulated depreciation at July 1, 2016?
C. Prepare the required journal entries on the date of disposal, July 1, 2016. (Assume no 2016 depreciation had yet been recorded)

Question

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The Answer of Beckworth Company purchased a truck on January 1, 2013, at a cash cost of $10,600. The estimated residual value was $400 and the estimated useful life 4 years. The company uses straight-line depreciation computed monthly. On July 1, 2016, the company sold the truck for $1,900 cash.
Required:
A. What was the depreciation expense amount per month?
B. What was the amount of accumulated depreciation at July 1, 2016?
C. Prepare the required journal entries on the date of disposal, July 1, 2016. (Assume no 2016 depreciation had yet been recorded)

Beckworth Company Purchased a Truck on January 1, 2013, at a Cash