Accounting for Plant Assets

Basin Corporation had the following transactions related to its delivery truck:

Year 1
Jan. 5	Purchased for $16,600 cash a new truck with an estimated useful life of four years and a salvage value of $2,600.
Feb. 20	Installed a new set of side-view mirrors at a cost of $70 cash.
June 9	Paid $290 for an engine tune-up, wheel balancing, and a periodic chassis lubrication.
Aug. 2	Paid a $260 repair bill for the uninsured portion of damages to the truck caused by Basin's own driver.
Dec. 31	Recorded depreciation on the truck for the year.

Year 2
May 1	Installed a set of parts bins in the truck at a cost of $1,000 cash. This expenditure was not expected to increase the salvage value of the truck.
Dec. 31	Recorded depreciation on the truck for the year.

Year 3
Dec. 31	Recorded depreciation on the truck for the year.

Basins depreciation policies include (1) using straight?line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $75 or less.

Required

Prepare journal entries to record these transactions and adjustments. Round all answers to the nearest dollar.

General Journal
Date	Description	Debit	Credit
YEAR 1
Jan. 5	Delivery Truck	Answer	Answer
	Cash	Answer	Answer
	To record purchase of truck.
Feb. 20	TruckTruck Repairs & Maintenance Expense	Answer	Answer
	Cash	Answer	Answer
	To record cost of installing side-view mirrors.
June 9	TruckTruck Repairs & Maintenance Expense	Answer	Answer
	Cash	Answer	Answer
	To record cost of tune-up, wheel balancing and lubrication.
Aug. 2	TruckTruck Repairs & Maintenance Expense	Answer	Answer
	Cash	Answer	Answer
	To record cost of repairing uninsured damages.
Dec. 31	Depreciation Expense - Delivery Truck	Answer	Answer
	Accumulated Depreciation - Delivery Truck	Answer	Answer
	To record depreciation on delivery truck.

General Journal
Date	Description	Debit	Credit
YEAR 2
May 1	Delivery Truck	Answer	Answer
	Cash	Answer	Answer
	To record cost of installing part bins.
Dec. 31	Depreciation Expense - Delivery Truck	Answer	Answer
	Accumulated Depreciation - Delivery Truck	Answer	Answer
	To record depreciation on delivery truck.

General Journal
Date	Description	Debit	Credit
YEAR 3
Dec. 31	Depreciation Expense - Delivery Truck	Answer	Answer
	Accumulated Depreciation - Delivery Truck	Answer	Answer
	To record depreciation on delivery truck.