Question: Mercury Delivery Service completed the following transactions and events involving

Mercury Delivery Service completed the following transactions and events involving the purchase and operation of equipment for its business.
2012
Jan. 1 Paid $ 25,860 cash plus $ 1,810 in sales tax for a new delivery van that was estimated to have a five-year life and a $ 3,670 salvage value. Van costs are recorded in the Equipment account.
Jan. 3 Paid $ 1,850 to install sorting racks in the van for more accurate and quicker delivery of packages. This increases the estimated salvage value of the van by another $ 230.
Dec. 31 Recorded annual straight- line depreciation on the van.
2013
Jan. 1 Paid $ 2,064 to overhaul the van’s engine, which increased the van’s estimated useful life by two years.
May 10 Paid $ 800 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.



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  • CreatedNovember 26, 2013
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