Atlas Trucking incurred the following costs during 2016: 1. Spent $15,300 on a major overhaul for a tractor-trailer rig. The overhaul is expected to increase the service life of the rig by three years. 2. Repaired the air-conditioning system for $3,300. 3. Rearranged and reconfigured the maintenance, loading, and unloading facilities at a cost of $78,000. The rearrangement is expected to result in substantial cost savings and increased efficiency over the next several years.
Required: Prepare journal entries to record the above costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)