A)McClintock Co. had the following transactions involving plant assets during Year 1. Unless otherwise indicated, all transactions were for cash. Prepare the general journal entries to record these transactions.

Jan. 2 Purchased a truck for $70,000 plus sales taxes of $3,000. The truck is expected to have a $14,000 salvage value and a 4 year life.

Jan. 3 Paid $2,500 to have the companys logo painted on the truck. This did not change the trucks salvage value.

Dec. 31 Recorded straight-line depreciation on the truck.

B) A company purchased and installed machinery on January 1 at a total cost of $93,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value. The machinery was disposed of on July 1 of year four. The company uses the calendar year.

1. Prepare the general journal entry to update depreciation to July 1 in year four.

2. Prepare the general journal entry to record the sale of the machine for $27,000 cash