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Unformatted text preview: Minor repairs to truck’s motor $250 New battery 55 Gas and oil 250 Dr. Repairs Expense 555 Cr . Cash 555 Aug. 6 Paid $860 for repairs to the hydraulic loader damaged when the driver backed into a loading dock. Dr. Repairs Expense 860 Cr. Cash 860 Dec. 31 Recorded straight-line depreciation on the truck. Dr. Depreciation Expense--Truck 15,800 Cr. Accum. Depreciation--Truck 15,800 Victor Leung 2 ACY1111 (2010) Chap10 Example 6 2008 Jan. 8 Paid Auto Repair Company $4,200 to overhaul (major) the truck’s motor, that extending the truck’s life one year beyond the original three-year estimate. However, it was also estimated that the extra year’s operation would reduce the truck’s salvage value to $5,000. Dr . Truck 4,200 Cr. Cash 4,200 Dec. 31 Recorded straight-line depreciation on the truck. Dr. Depreciation Expense-- Truck 12,500 Cr. Accum. Depreciation--Truck 12,500...
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- Spring '11