Journal Entries for Plant Assets - Stellar Delivery Service had the following transactions related to its delivery truck:
Year 1
Mar. 1 Purchased for $32,500 cash a new delivery truck with an estimated useful life of five years and a $6,850 salvage value
2 Paid $600 for painting the company name and log on the truck
Dec 31 Recorded depreciation on the truck for the year.
Year 2
July 1 Installed air conditioning in the truck at a cost of $1,808 cash. Although the truck's estimated useful life was unaffected, its estimated salvage value was increased by $400.
Sept 7 Paid $450 for truck tune-up and safety inspection
Dec 31 Recorded depreciation on the truck for the year
Year 3
Sept 3 Installed a set of front nd rear bumper guards at a cost of $145 cash.
Dec 31 Recorded depriciation on the truck for the year
Year 4
Dec 31 Recorded depreciation on the truck for the year
Stellar's depreciation policies include (1) using straight-line depreciation, (2) recording depreciation to the nearest whole month, and (3) expensing all truck expenditures of $150 or less.
Required
Prepare journal entries to record these transactions and adjustments.