A depreciation schedule for semi-trucks of Martinez Manufacturing Company was requested by your auditor soon after December 31, 2018, showing the additions, retirements, depreciation, and other data affecting the income of the company in the 4-year period 2015 to 2018, inclusive. The following data were ascertained.

Balance of Trucks account, Jan. 1, 2015
Truck No. 1 purchased Jan. 1, 2012, cost		$21,780
Truck No. 2 purchased July 1, 2012, cost		26,620
Truck No. 3 purchased Jan. 1, 2014, cost		36,300
Truck No. 4 purchased July 1, 2014, cost		29,040
Balance, Jan. 1, 2015		$113,740

The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on that date of $36,542 (depreciation on the four trucks from the respective dates of purchase, based on a 5-year life, no salvage value). No charges had been made against the account before January 1, 2015. Transactions between January 1, 2015, and December 31, 2018, which were recorded in the ledger, are as follows.

July 1, 2015		Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which was $48,400. Martinez. paid the automobile dealer $26,620 cash on the transaction. The entry was a debit to Trucks and a credit to Cash, $26,620. The transaction has commercial substance.
Jan. 1, 2016		Truck No. 1 was sold for $4,235 cash; entry debited Cash and credited Trucks, $4,235.
July 1, 2017		A new truck (No. 6) was acquired for $50,820 cash and was charged at that amount to the Trucks account. (Assume truck No. 2 was not retired.)
July 1, 2017		Truck No. 4 was damaged in a wreck to such an extent that it was sold as junk for $847 cash. Martinez received $3,025 from the insurance company. The entry made by the bookkeeper was a debit to Cash, $3,872, and credits to Miscellaneous Income, $847, and Trucks, $3,025.

Entries for straight-line depreciation had been made at the close of each year as follows: 2015, $25,410; 2016, $27,225; 2017, $30,311; 2018, $36,784.

For each of the 4 years, compute separately the increase or decrease in net income arising from the companys errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax considerations. (Enter credit, understated and decrease amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Per Company Books

As Adjusted

Net

Trucks dr. (cr.)

Acc. Dep. Trucks dr. (cr.)

Retained Earnings dr. (cr.)

Trucks dr. (cr.)

Acc. Dep., Trucks dr, (cr.)

Retained Earnings dr, (cr.)

Income Overstated (Understated)

1/1/15

Balance

$

$

$

$

$

$

$

7/1/15

Purchase Truck #5

Trade Truck #3

12/31/15

Depreciation

12/31/15

Balances

1/1/16

Sale of Truck #1

12/31/16

Depreciation

12/31/16

Balances

7/1/17

Purchase of Truck #6

7/1/17

Disposal of Truck #4

12/31/17

Depreciation

12/31/17

Balances

12/31/18

Depreciation

12/31/18

Balance

$

$

$

$

$

$

$

Prepare one compound journal entry as of December 31, 2018, for adjustment of the Trucks account to reflect the correct balances as revealed by your schedule, assuming that the books have not been closed for 2018. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit