Date Transaction

Year 1

13-Mar Maintained delivery vehicles. Oil changes and general service work by Sallys Service

Garage was completed, $200 on account.

20-Apr Sold delivery vehicle for $8,000 cash. The original vehicle was purchased for $42,000

and had accumulated depreciation of $38,000.

10-May Added a new transmission to a delivery van. The transmission was purchased and

installed for $1000 on account, by Sallys Service Garage. It is estimated the

transmission will extend the expected life by two years.

20-Aug Discarded office furniture with a $250 book value. The furniture was originally

purchased for $900.

31-Dec Record the annual depreciation expense on the used delivery van from part one. #1 van.