Borrell Company purchased four delivery trucks on January 2, 2019, for $22,000 each.
Borrell expected two of the trucks to last 5 years and have a residual value of $3,500 each. The other two trucks had an expected life of 8 years and no residual value. Borrell uses straight-line depreciation on a composite basis.

Required:
Prepare journal entries to record the following events:
1. January 1, 2021. One of the two trucks expected to last 5 years is destroyed in an accident. The truck was not insured and the scrap value is $400.
2. January 5, 2021. A new truck is acquired for $26,000. It has an expected life of 4 years and a residual value of $3,920.
3. Depreciation expense for 2021.