Kevin Company prepare the journal entries to record all of the transactions listed below.Kevin Company hjad the following transactions involving plant assets during 2008 and 2009. Unless otherwise indicated, all transactions were for cash.
Jan 2: Purchases a truck for $50,000 plus sales taxes of $3,000. The Truck is expected to have a $4,000 salvage value and a 4 year life Jan 5: Paid $5,000 to put a bigger engine in the truck. The new engine is expected to make the truck run more efficiently and will increase the truck's useful life by another year. The salvage value is the same.
Jan 3: Paid $1,500 to have the company name and logo painted on the side of the truck. This will not add to the value of the Advertising Expense Mar 1: Kevin Company paid $2000 to replace a broken tailgate. The tailgate was damaged when a large and heavy box accidently dropped on it.Dec 31: The Company recorded straight-line depreciation of the truck Dec 31: Recorded Straight-Line Depreciation for a year on the truck.