On January 1,2009,First Bank acquired 10 cars for company use.The cost of each car was $15,000 and the bank estimated that each car would have a 4-year useful life and a residual value of $2,000.
Required:
a.Provide the journal entry needed on December 31,2010,if four cars were sold for a total of $17,500 and First Bank uses double-declining-balance depreciation.
b.Provide the journal entry needed on December 31,2010,if four cars were sold for a total of $17,500 and First Bank uses straight-line depreciation.
c.Assume instead of the above information that on December 31,2010,one of the cars was wrecked.Provide the journal entry needed on December 31,2010,if First Bank's insurance company paid $2,900 for the wrecked car and the company uses straight-line depreciation.

Question

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The Answer of On January 1,2009,First Bank acquired 10 cars for company use.The cost of each car was $15,000 and the bank estimated that each car would have a 4-year useful life and a residual value of $2,000.
Required:
a.Provide the journal entry needed on December 31,2010,if four cars were sold for a total of $17,500 and First Bank uses double-declining-balance depreciation.
b.Provide the journal entry needed on December 31,2010,if four cars were sold for a total of $17,500 and First Bank uses straight-line depreciation.
c.Assume instead of the above information that on December 31,2010,one of the cars was wrecked.Provide the journal entry needed on December 31,2010,if First Bank's insurance company paid $2,900 for the wrecked car and the company uses straight-line depreciation.

On January 1,2009,First Bank Acquired 10 Cars for Company Use