Accounting for Plant Assets Basin Corporation had the following transactions related to its delivery truck:...
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Accounting
Accounting for Plant Assets
Basin Corporation had the following transactions related to its delivery truck:
Basins depreciation policies include (1) using straightline depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $100 or less.
Required
Prepare journal entries to record these transactions and adjustments. Round all answers to the nearest dollar.
Year 1 Jan. 5 Purchased for $16,300 cash a new truck with an estimated useful life of four years and a salvage value of $4,300 Feb. 20 Installed a new set of side-view mirrors at a cost of $68 cash. une 9 Paid $325 for an engine tune-up, wheel balancing, and a periodic chassis lubrication. Aug. 2 Paid a $410 repair bill for the uninsured portion of damages to the truck caused by Basin's own driver. Dec. 31 Recorded depreciation on the truck for the year. Year 2 May 1 Installed a set of parts bins in the truck at a cost of $800 cash. This expenditure was not expected to increase the salvage value of the truck. Recorded depreciation on the truck for the year 31 Year 3 Dec. 31 Recorded depreciation on the truck for the year
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