Suppose Illinois Power Co. uses plant ledger records to control its service trucks, purchased from Bird-Kultgen Ford. The supervisor is responsible for the trucks, which are located at the company's service garage. The following transactions were completed during 19X7 and 19X8:

\section*{\(19 \times 7\)}

Jan. 6 Paid \$12,420 cash for a used service truck (truck no. 117).

7 Paid \(\$ 2,500\) to have the truck engine overhauled.

8 Paid \(\$ 180\) to have the truck modified for business use.

Nov. 5 Paid \(\$ 107\) for replacement of one tire.

Dec. 31 Recorded depreciation on the truck by the double-declining-balance method, based on a four-year useful life and a \(\$ 1,100\) residual value.

\section*{19X8}

July 16 Repaired a damaged fender on truck no. 117 at a cash cost of \(\$ 877\).

Sep. 6 Traded in service truck no. 117 for a new one (truck no. 182) with a cash cost of \(\$ 18,000\). The dealer granted a \(\$ 5,500\) allowance on the old truck, and Illinois Power paid the balance in cash. Recorded 19X8 depreciation for year to date and then recorded exchange of the trucks.

Dec. 31 Recorded depreciation on truck no. 182 by the double-declining-balance method, based on a four-year life and a \(\$ 1,500\) residual value.

\section*{Required}

1. Identify the capital expenditures and the revenue expenditures in the transactions. Which expenditures are debited to an asset account? Which expenditures are debited to an expense account?

2. Prepare a separate plant ledger record for each of the trucks.