Transcribed Image Text: Question 5: A pharmacy acquired a delivery truck at a cost of $14,400. Estimated life of the truck is four years. Management of pharmacy elects to use

Transcribed Image Text: Question 5:
A pharmacy acquired a delivery truck at a cost of $14,400. Estimated life of the
truck is four years. Management of pharmacy elects to use the straight line method
of depreciation for vehicles.
1. State the amount of depreciation expense per yare and per month. Give the
adjusting entry to record depreciation on the truck at the end of the firms’
month and explain where the accounts involved would appear in the financial
statement.
2. Assume the delivery truck was acquired on sep1, 2018 and that this vehicle is
the only delivery truck owned by the business. Show how this truck would be
reported in pharmacy balance sheet at December 31 2018.
3. Compare the amount credited to accumulated depreciation in the adjusting
entry in (part a) to the accumulated depreciation reported on the balance e
sheet at December 31 2018 (part b). are these two amount the same? Explain
briefly?

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