South Seas Distributors completed the following transactions involving the purchase and operation of a delivery truck:
Transaction Description
May 27 Paid $35,600 for a new truck. It was estimated that the truck would be sold for $15,000 after four years.
June 9 Paid $3,500 to have special racks installed in the truck. The racks did not increase the truck’s estimated resale value, but were necessary to minimize the damage from products shifting during transit. The truck was put into service after the racks were installed.
Dec. 31 Recorded straight-line depreciation on the truck.
Apr. 5 Paid $650 for repairs to the truck’s fender, which was damaged when the driver scraped a loading dock.
July 23 Paid $8,000 to have a refrigerating unit installed in the truck. This increased the truck’s estimated resale value by $1,000.
Dec. 31 Recorded straight-line depreciation on the truck.
Prepare journal entries to record the above transactions.

  • CreatedJune 11, 2015
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