Problem

Continuing expenditures with statements modelVenus Company owned a service truck that was...

Continuing expenditures with statements model

Venus Company owned a service truck that was purchased at the beginning of 2011 for $20,000.

It had an estimated life of three years and an estimated salvage value of $2,000. Venus uses

straight-line depreciation. Its financial condition as of January 1,2013. is shown in the following financial statements model:

In 2013, Venus spent the following amounts on the truck:

Jan.	4	Overhauled the engine for $4,000. The estimated life was extended one additional year, and the salvage value was revised to $3,000.
July	6	Obtained oil change and transmission service. $160.
Aug.	7	Replaced the fan belt and battery, $360.
Dec.	31	Purchased gasoline for the year, $5,000.
	31	Recognized 2013 depreciation expense.

Required

a. Record the 2013 transactions in a statements model like the preceding one.

b. Prepare journal entries for the 2013 transactions.

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Solutions For Problems in Chapter 8

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