Accounting for Plant Assets

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

Year 1
Jan. 5	Purchased for $28,000 cash a new truck with an estimated useful life of four years and a salvage value of $4,000.
Feb. 20	Installed a new set of side-view mirrors at a cost of $80 cash.
June 9	Paid $325 for an engine tune-up, wheel balancing, and a periodic chassis lubrication.
Aug. 2	Paid a $410 repair bill for the uninsured portion of damages to the truck caused by Ethan'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 $950 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.

Ethanss depreciation policies include (1) using straightline depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $100 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	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	To record purchase of truck.
Feb. 20	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	To record cost of installing side-view mirrors.
June 9	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	To record cost of tune-up, wheel balancing and lubrication.
Aug. 2	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	To record cost of repairing uninsured damages.
Dec. 31	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	AnswerAccumulated Depreciation - Delivery TruckCashDelivery TruckDepreciation Expense - Delivery TruckTruck Repairs & Maintenance Expense	Answer	Answer
	To record depreciation on delivery truck.