On January 1, 2001, JN acquired three identical trucks at a cost of $24,000 each. They have an estimated useful life of four years and a residual value of 10 percent of cost. On January 2, 2002, one truck was damaged in an accident. It was a complete loss except for salvage of $1,400 cash. The company uses group amortization for the trucks. JN has a December 31 year-end and only accounts for amortization at year-end.
(a) Give the entry to record the effects of the accident January 2, 2002.
(b) Give the adjusting journal entries to record amortization expense at the end of 2001 and 2002.

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The Answer of On January 1, 2001, JN acquired three identical trucks at a cost of $24,000 each. They have an estimated useful life of four years and a residual value of 10 percent of cost. On January 2, 2002, one truck was damaged in an accident. It was a complete loss except for salvage of $1,400 cash. The company uses group amortization for the trucks. JN has a December 31 year-end and only accounts for amortization at year-end.
(a) Give the entry to record the effects of the accident January 2, 2002.
(b) Give the adjusting journal entries to record amortization expense at the end of 2001 and 2002.

On January 1, 2001, JN Acquired Three Identical Trucks at a Cost