Chen Company completed the following transactions and events involving its delivery trucks.
2010 |
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Jan. | 1 | Paid $19,415 cash plus $1,165 in sales tax for a new delivery truck estimated to have a five-year life and a $3,000 salvage value. Delivery truck costs are recorded in the Trucks account. |
Dec. | 31 | Recorded annual straight-line depreciation on the truck. |
2011 |
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Dec. | 31 | Due to new information obtained earlier in the year, the truck’s estimated useful life was changed from five to four years, and the estimated salvage value was increased to $3,500. Recorded annual straight-line depreciation on the truck. |
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2012 |
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Dec. 31 |
| Recorded annual straight-line depreciation on the truck. |
Dec. 31 |
| Sold the truck for $6,200 cash.
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Required
Prepare journal entries to record these transactions and events.
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