Mahoney Company Had the Following Transactions Involving Plant Assets During

question 70

Essay

Mahoney Company had the following transactions involving plant assets during 2012 and 2013.Unless otherwise indicated,all transactions were for cash.
$\begin{array}{|c|l|}\hline 2012 & \\\hline \text { Jan. 2 } & \begin{array}{l}\text { Purchased a truck for } \$ 50,000 \text {. Sales tax on the truck was } \$ 3,000 \text {, and the license } \\\text { was } \$ 250 \text {. The truck is expected to have a } \$ 4,000 \text { salvage value and a four-year } \\\text { life. }\end{array} \\\hline \text { Jan. 3 } & \begin{array}{l}\text { Paid } \$ 1,500 \text { to have the company's logo painted on the truck. This did not change } \\\text { the truck's salvage value. }\end{array} \\\hline \text { Dec. 31 } & \text { Recorded straight-line depreciation on the truck. }\\\hline\\\hline2013 & \\\hline \text { Jan. } 5 & \begin{array}{l}\text { Paid } \$ 5,000 \text { to put a bigger engine in the truck. This new engine is expected to } \\\text { make the truck run more efficiently and will increase the truck's useful life by one } \\\text { year. The salvage value remained at } \$ 4,000 .\end{array} \\\hline \text { Mar. 1 } & \begin{array}{l}\text { Paid } \$ 2,000 \text { to replace a broken tailgate. The tailgate was damaged when a heavy } \\\text { carton was inadvertently dropped on it. }\end{array} \\\hline \text { Dec.31 } & \text { Recorded straight-line depreciation on the truck. }\\\hline \end{array}$
Prepare the general journal entries to record these transactions.

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Definitions:

Organizational Communication

The study and implementation of communication strategies within organizations to improve efficiency and morale.

Internal Perspective

A focus on factors within an organization, such as policies and employee attitudes, that impact its operations.

Work Load

The amount of work assigned to or expected from an individual or team within a specified time frame.

Internal Perspective

The viewpoint focusing on internal factors and operations within an organization that influence its performance and decision-making.