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 salvage value. 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 salvage value 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.


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  • CreatedMarch 18, 2015
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