A depreciation schedule for semi-trucks of Stellar Manufacturing Company was requested by your auditor soon after December 31, 2018, showing the additions, retirements, depreciation, and othe /15 Purchase data affecting the income of the company in the 4-year period 2015 to 2018, inclusive. The 7/1/15 Truck #5 ollowing data were ascertained. Trade Balance of Trucks account, Jan. 1, 2015 Truck Truck No. 1 purchased Jan. 1, 2012, cost $21,960 12/31/Deprecia Truck No. 2 purchased July 1, 2012, cost 26,840 Truck No. 3 purchased Jan. 1, 2014, cost 36,600 Truck No. 4 purchased July 1, 2014, cost 12/31/ Balances 29,280 Balance, Jan. 1, 2015 $114,680 16 Sale of 1/1/16 Truck #1 The Accumulated Depreciation-Trucks account previously adjusted to January 1, 2015, and entered in the ledger, had a balance on that date of $36,84 36,844 (depreciation on the four trucks from the 12/31/Deprecia espective dates of purchase, based on a 5-year life, no salvage value). No charges had been made 16 tion against the account before January 1, 2015. 12/31/ Balances ransactions between January 1, 2015, and December 31, 2018, which were recorded in the 16 ledger, are as follows. Purchase July 1, 2015 Truck No. 3 was traded for a larger one (No. 5), the agreed purchase price of which 7/1/17 of Truck was $48,800. Stellar. paid the automobile dealer $26,840 cash on the transaction #6 The entry was a debit to Disposal commercial substance. 7/1/17 of Truck Jan. 1, 2016 Truck No. 1 was sold for $4,270 cash; entry debited Cash and credited Trucks, $4,270. 12/31/Deprecia July 1, 2017 A new truck (No. 6) was acquired for $51,240 cash and was charged at that 17 tion amount to the Trucks account. (Assume truck No. 2 was not retired.) July 1, 2017 Truck No. 4 was damaged in a w $854 cash. St n a wreck to such an sh. Stellar received $3,050 from the insurance such an extent that it was sold as junk fo 12/31/ Balances rance company. The entry made 17 by the bookkeeper was a debit to Cash, $3,904, and credits to Miscellaneous Income, $854, and Trucks, $3,050. 12/31/ Deprecia tion Entries for straight-line depreciation had been made at the close of each year as follows: 2015, $25,620; 2016, $27,450; 2017, $30,561; 2018, $37,088. 12/31/ Balance For each of the 4 years, compute separately the increase or decrease in net income arising from the company's errors in determining or entering depreciation or in recording transactions affecting trucks, ignoring income tax consideration iderations. (Enter credit, understated and decrease ase amounts sing either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) INK TO TEXT Per Company Books As Adjusted Income Prepare one compound journal entry as of December 31, 2018, for adjustment of the Trucks Trucks dr. ACC. Acc. Dep. Retained Trucks dr. ACC. Dep., Retained Overstate account to reflect the correct balances as revealed by your schedule, assuming that the books have (cr.) Trucks dr. Earnings (cr.) dr. (cr.) (cr.) . Trucks dr, Earnings dr, (cr.) (Understa 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 ted) amount is entered. Do not indent manually.) 1/1/15Balance Account Titles and Explanation Debit Credit