McClintock Co

question 68

Essay

McClintock Co. had the following transactions involving plant assets during Year 1. Unless otherwise indicated, all transactions were for cash.
Jan. 2 Purchased a truck for $70,000 plus sales taxes of $3,000. The truck is expected to have a
$14,000 salvage value and a 4 year life.
Jan. 3 Paid $2,500 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.
Prepare the general journal entries to record these transactions.

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Definitions:

General Adaptation Syndrome

A three-stage response that describes the physiological changes the body goes through under stress: alarm, resistance, and exhaustion.

Defence Mechanisms

Psychological strategies brought into play by individuals, organizations, or systems to manage thoughts, feelings, or actions that are deemed unacceptable or threatening.

Unconscious Reaction

An automatic response that occurs below the level of conscious awareness.

Anxiety

Sensing apprehension, stress, or restlessness over an event with an unpredictable result.