McClintock Co. had the following transactions involving plant assets during Year 1. Unless otherwise indicated, all transactions were for cash.
Jan. 2 Purchased a truck for $70,000 plus sales taxes of $3,000. The truck is expected to have a
$14,000 salvage value and a 4 year life.
Jan. 3 Paid $2,500 to have the company's logo painted on the truck. This did not change the truck's salvage value.
Dec. 31 Recorded straight-line depreciation on the truck.
Prepare the general journal entries to record these transactions.

Question

Quizplus · Accepted Answer

The Answer of McClintock Co. had the following transactions involving plant assets during Year 1. Unless otherwise indicated, all transactions were for cash.
Jan. 2 Purchased a truck for $70,000 plus sales taxes of $3,000. The truck is expected to have a
$14,000 salvage value and a 4 year life.
Jan. 3 Paid $2,500 to have the company's logo painted on the truck. This did not change the truck's salvage value.
Dec. 31 Recorded straight-line depreciation on the truck.
Prepare the general journal entries to record these transactions.