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Accounting for Plant Assets Stellar Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. Purchased for $32,500 cash a new
Accounting for Plant Assets Stellar Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. Purchased for $32,500 cash a new delivery truck with an estimated useful life of five years 1and a $6,850 salvage value. Paid $600 for painting the company name and logo on the truck. 2 Dec. Reco 31 Recorded depreciation on the truck for the year. Year 2 uly Installed air conditioning in the truck at a cost of $1,808 cash. Although the truck's 1estimated useful life was unaffected, its estimated salvage value was increased by $400. Paid $450 for truck tune-up and safety inspection. 7 Dec. 31 Recorded depreciation on the truck for the year. Year 3 Sept 3 Installed a set of front and rear bumper guards at a cost of $145 cash Dec. 31 Recorded depreciation on the truck for the year Year 4 Dec. 31 Recorded depreciation on the truck for the year. Stellar's depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $150 or less. Required Prepare journal entries to record these transactions and adjustments. Round answers to the nearest whole number, when appropriate. General Journal Debit Credit Date Description YEAR Delivery Truck 32,500 0 Mar. 5 0 32,500 Cash To record purchase of truck. 600 Delivery Truck Mar. 2 600 Cash 0 To record cost of logo Depreciation Expense Delivery Truck 4,375 Dec. 31 Accumulated Depreciation Delivery Truck+ 4,375 To record depreciation expense. General Journal Debit Credit Description Date YEAR Delivery Truck 1,808 Jul. 1 Cash 1,808 To record cost of air-conditioning Truck Repairs &Maintenance Expense 450 Sep. 7 450 Cash To record tune-up and safety inspection cost. Depreciation Expense - Delivery Truck 5,485 Dec. Depreciation Expense - Delivery Truck 5,485 Dec. 31 Accumulated Depreciation - Delivery Truck + 5,485 To record depreciation expense. General Journal Debit Credit Date Description YEAR 3 Truck Repairs &Maintenance Expense 145 Sep. 3 145 Cash To record installation of bumper guards 5,278 Depreciation Expense - Delivery Truck Dec. 31 5,278 Accumulated Depreciation - Delivery Truck+ 0 To record depreciation expense. General Journal Debit Credit Date Description YEAR 4 Dec. Depreciation Expense- Delivery Truck 31 5,178 5,278 Accumulated Depreciation - Delivery Truck To record depreciation expense. Check
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