Question: Zander delivery service completed the following transactions and events involving

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.

View Solution:


Sale on SolutionInn
Sales0
Views81
Comments
  • CreatedMarch 18, 2015
  • Files Included
Post your question
5000