Fab-Form Industries completed the following transactions involving the purchase of delivery equipment.

Required

Prepare journal entries to record the transactions.

Transcribed Image Text:

2020 Paid cash for a new truck, $68,400 plus $3,420 in freight costs. The truck was estimated to have a four-year life and an $18,000 residual value. 27 Paid $3,780 for special racks installed on the truck." The racks will enhance the economic benefits flowing from the truck. Recorded straight-line depreciation on the truck to the nearest whole month. 26 June Dec. 31 2021 Jan. It was determined that the estimated useful life of the truck should be revised to a total of six years and the residual value changed to $10,100. Paid $660 for repairs to the truck's fender damaged when the driver backed into a loading dock. Mar. 15 Recorded straight-line depreciation on the truck to the nearest whole month. Dec. "Assume the speclal racks depreclate In an identical manner as the truck. LO