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Question
In year one, McClintock Co. acquired a truck that cost $75,500 with an estimated $14,000 salvage value and 4 year estimated useful life. Depreciation in the first year was $15,375. McClintock had the following transactions involving plant assets during Year 2. Unless otherwise indicated, all transactions were for cash.| Jan. 5 | Paid $5,000 to put a new engine in the truck that is expected to make the truck run more efficiently and increase the truck's useful life by one year. The salvage value did not change. |
| Mar. 1 | Paid $2,000 to replace a broken tailgate that was damaged when a heavy carton was inadvertently dropped on it. |
| Dec. 31 | Recorded straight-line depreciation on the truck. |
Prepare the general journal entries to record these transactions.
Answer
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