Zander Delivery Service completed the following transactions and events involving the purchase and operation of equipment for

Question:

Zander Delivery Service completed the following transactions and events involving the purchase and operation of equipment for its business.
2010
Jan. 1 Paid $58,000 cash plus $4,000 in sales tax for a new delivery van that was estimated to have a four-year life and a $3,000 . Van costs are recorded in the Equipment account.
Jan. 3 Paid $2,900 to install sorting racks in the van for more accurate and quicker delivery of packages. This increases the estimated of the van by another $200.
Dec. 31 Recorded annual straight-line depreciation on the van.
2011
Jan. 1 paid $4,300 to overhaul the van’s engine, which increased the van’s estimated useful life by two years.
May 10 Paid $1,075 to repair the van after the driver backed it into a loading dock.
Dec. 31 Record annual straight-line depreciation on the van. (Round to the nearest dollar.)
Required
Prepare journal entries to record these transactions and events.
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...