Journal entries in relation to plant asset transactions

Assignment Help Financial Accounting

Reference no: EM1313923

Journal entries in relation to plant asset transactions.

Mahoney Company had the following transactions involving plant assets during 2007 and 2008. Unless otherwise indicated, all transactions were for cash.

2007
Jan. 2	Purchased a truck for $50,000. Sales tax on the truck was $3,000, and the license was $250. The truck is expected to have a $4,000 salvage value and a 4 year life.
Jan. 3	Paid $1,500 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.
2008
Jan. 5	Paid $5,000 to put a bigger engine in the truck. This new engine is expected to make the truck run more efficiently, and will increase the truck's useful life by one year. The salvage value remained at $4,000.
Mar. 1	Paid $2,000 to replace a broken tailgate. The tailgate was damaged when a heavy carton was inadvertently dropped on it.
Dec. 31	Recorded straight-line depreciation on the truck.

Prepare the general journal entries to record these transactions.

Reference no: EM1313923

Questions Cloud

Additional business gained by moving downtown will exceed : One of the partners favors moving downtown because she believes the additional business gained by moving downtown will exceed the higher rent at the downtown location plus the cost of making the move.

Computation of present values of the projects : Computation of Present values of the projects and suppose your bank account will be worth $7,000.00 in one year

Post the journal entries to the t-accounts : Post the journal entries to the T-accounts. (Hint: some new accounts must be opened. and Prepare all four financial statements for the year ended December 31, 2009.

Your decision to purchase which product : Explain how advertising did or did not play a key role in your decision to purchase which product. Why might it be excessive at times.

Journal entries in relation to plant asset transactions : Journal entries in relation to plant asset transactions and Prepare the general journal entries to record these transactions.

Several of his research scientists seems to be spending work : He finds which he is overworked also which several of his research scientists seems to be spending work hours playing tennis.

Explain leverage analysis of capital budgeting decisions : Explain Leverage analysis of capital budgeting decisions and show how you could generate exactly the same cash flows and rate of return by investing in Firm A and using homemade leverage

A lump-sum tax causes the after-tax consumption schedule : A lump-sum tax causes the after-tax consumption schedule to be flatter than the before-tax consumption schedule

The average retail price of a roll of kodak : Suppose which in the 1990s, the average retail price of a roll of Kodak film was $6.95 also which Kodak's marginal cost was $3.475 per roll.

User Account

All Pages