Question
Journal Entries for Plant Assets - Stellar Delivery Service had the following transactions related to its delivery truck: Year 1 Mar. 1 Purchased for $32,500
Journal Entries for Plant Assets - Stellar Delivery Service had the following transactions related to its delivery truck:
Year 1
Mar. 1 Purchased for $32,500 cash a new delivery truck with an estimated useful life of five years and a $6,850 salvage value.
Mar. 2 Paid $600 for painting the company name and logo on the truck.
Dec. 31 Recorded depreciation on the truck for the year.
Year 2
July 1 Installed air conditioning in the truck at a cost of $1,808 cash. Although the trucks estimated useful life was unaffected, its estimated salvage value was increased by $400.
Sept 7 Paid $450 for truck tuneup and safety inspection.
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.
Stellars depreciation policies include (1) using straightline 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.
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