Reference no: EM132480991

In the recent years, PT Bravo has purchased three delivery Cars. Because of frequent employee turnover in the accounting department, a different accountant was in charge of selecting the depreciation method of each delivery car, and various methods have been used.

Information concerning the delivery cars is summarized in the table below.

Delivery Car       Acquired       Cost         SalvageValue      Useful Life(in years)       Depreciation Method

A                    Jul 1, 2012        $115,000    $ 10,000             10                             Straight-line

B                    Jan1, 2013        $ 95,000      $ 7,500             5                        Double declining-balance

C                     Jan 1, 2013       $ 106,000    $ 6,000             5                       Units -of-activity

For the delivery car C, the car is expected to be driven 150,000 miles. Actual miles of use in the first 3 years were:

2013: 2,800,

2014: 3,200;

2015: 3,300.

Required:

Question 1. Prepare journal entries for purchasing those delivery cars in cash.

Question 2. Compute the amount of depreciation expense of each delivery car per December 31, 2014.

Question 3. Prepare journal entries for (2).

Question 4. Prepare the depreciation table for delivery car A.