On January 1, 2009, Vadar Company purchased all of the stock of Yoda Company. On January 1, 2011, Vadar Company purchased a truck for $45,000, this truck is expected to last 9 years with no salvage value; Vadar uses straight line depreciation On January 1, 2014, Vadar Company sells this truck to Yoda Company for $36,000. Yoda expects the truck to last 6 years with no salvage. . Vadar received a 10% note in exchange for the truck with interest due each January 1st and the principle due January 1, 2016. On January 1, 2017, Yoda sold the truck to a foreign company for $22,000.
REQUIRED:
MAKE THE JOURNAL ENTRY VADAR MADE WHEN IT BOUGHT THE TRUCK FOR CASH
WHAT IS THE ANNUAL DEPRECIATION VADAR TAKES ON THE TRUCK?
MAKE THE JOURNAL ENTRY VADAR MAKES WHEN IT SELLS THE TRUCK TO YODA
MAKE THE JOURNAL ENTRY YODA MAKES WHEN IT BUYS THE TRUCK
MAKE THE ADJUSTING ENTRY YODA MAKES ON 12/31/14 FOR THE NOTE PAYABLE
MAKE THE ADJUSTING ENTRY VADAR MAKES ON 12/31/14 FOR THE NOTE RECEIVABLE
WHAT IS THE ANNUAL DEPRECIATION YODA TAKES ON THE TRUCK?
MAKE THE NECESSARY WORKSHEET ENTRIES FOR 2014 MAKE THE NECESSARY WORKSHEET ENTRIES FOR 2015
MAKE THE JOURNAL ENTRIES YODA MAKES ON 1/1/16 WHEN IT PAYS THE INTEREST AND PAYS OFF THE NOTE
MAKE THE JOURNAL ENTRIES VADAR MAKES ON 1/1/16 WHEN IT COLLECTS INTEREST AND HAS THE NOTE PAID OFF
MAKE THE NECESSARY WORKSHEET ENTRIES FOR 2016
MAKE THE ENTRY YODA MAKES WHEN IT SELLS THE TRUCK IN 2017
MAKE THE NECESSARY WORKSHEET ENTRIES FOR 2017