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Problem A GBC purchases a truck for cash

Accounting

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Problem A GBC purchases a truck for cash. The price for the truck is $30,000, sales taxes are $1,200, painting the logo is $800, tags cost $120 and insurance for the first year is $2,000. a) Show the journal entry to record the preceding transaction b) Prepare a depreciation schedule assuming a 5-year life, straight-line depreciation, and a salvage value of $2,000 c) Prepare the journal entry to record depreciation for the first year assuming the purchase was made July 1 d) Show the journal entry to record the disposal of the truck if it is sold for $10.000 at the end of its useful life. I Problem B Assume the same facts as problem A. a) Prepare a depreciation schedule using the declining balance method. b) Assuming a useful life of 100,000 miles, prepare a depreciation schedule assuming the following miles of usage in years one through five, in order: 25,000;30,000:10,000: 20,000) 15,000