During a three-year period, Braden Electric completed the fol- P.O. 2,3,4 lowing transactions related to its service truck:

Instructions Check Figure n-7 Year 2 adjustment amount, $2,450 1. Record the transactions in general journal form, page 97.
2. After journalizing each entry, post to the following ledger accounts: Truck;
Accumulated Depreciation, Truck; Truck Repair Expense; Depreciation Expense, Truck. s

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Year 1 Jan. 4 Bought a used service truck for cash, $12,600. Nov. 21 Paid garage for maintenance repairs to the truck, $146. Dec. 31 Recorded the adjusting entry for depreciation for the fiscal year. The estimated life of the truck is four years, and it has an estimated trade- Year 2 in value of $2,800. Braden uses the straight-line method of depreciation. 31 Closed the expense accounts to the Income Summary account. Apr. 2 May 24 Dec. 31 31 Year 3 June 6 27 Paid garage for tune-up of truck, $76. Paid $345 for tires for the truck. Recorded the adjusting entry for depreciation for the fiscal year. Closed the expense accounts to the Income Summary account. Paid garage for maintenance repairs to truck, $342. Traded in the used truck for a new truck, which cost $21,600, receiv- ing a trade-in allowance of $8,400 and paying the difference in cash. Made the entry to record the depreciation on the truck up to the present date. Made the entry to record the exchange, assuming gain or loss is not recognized. Dec. 31 Recorded the adjusting entry for depreciation of the new truck for the fiscal year. The estimated life of the truck is six years, and it has an estimated trade-in value of $2,600. Braden Electric uses the straight-line method of depreciation. 31 Closed the expense accounts to the Income Summary account.