Suppose Procter and Gamble uses plant ledger records to control its service trucks, purchased from Rountree Motors. The supervisor is responsible for the trucks, which are located at the company's service garage. The following transactions were completed during 19X6 and 19X7:

19X6 Jan. 10 Paid \(\$ 11,500\) cash for a used service truck (truck no. 86).

11 Paid \(\$ 1,500\) to have the truck engine overhauled.

12 Paid \(\$ 250\) to have the truck modified for business use.

Aug. 3 Paid \(\$ 603\) for transmission repair and oil change.

Dec. 31 Recorded depreciation on the truck by the double-declining-balance method, based on a five-year life and a \(\$ 1,500\) residual value.

\(19 \times 7\)

Mar. 13 Replaced a damaged bumper on truck no. 86 at a cash cost of \(\$ 295\).

May 12 Traded in service truck no. 86 for a new one (truck no. 103) with a cash cost of \(\$ 20,500\). The dealer granted a \(\$ 7,000\) allowance on the old truck, and Procter and Gamble paid the balance in cash. Recorded 19X7 depreciation for year to date and then recorded exchange of the trucks.

Dec. 31 Recorded depreciation on truck no. 103 by the double-declining-balance method, based on a five-year life and a \(\$ 2,000\) 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.