Mahoney Company Had the Following Transactions Involving Plant Assets During

question 68

Essay

Mahoney Company had the following transactions involving plant assets during 2010 and 2010.Unless otherwise indicated,all transactions were for cash.
$\begin{array}{|c|l|}\hline 2009 & \\\hline \text { Jan. 2 } & \begin{array}{l}\text { Purchased a truck for } \$ 50,000 \text {. Sales tax on the truck was } \$ 3,000 \text {, and the license } \\\text { was } \$ 250 . \text { The truck is expected to have a } \$ 4,000 \text { salvage value and a 4-year life. }\end{array} \\\hline \text { Jan. 3 } & \begin{array}{l}\text { Paid } \$ 1,500 \text { to have the company's logo painted on the truck. This did not change } \\\text { the truck's salvage value. }\end{array} \\\hline \text { Dec.31 } & \text { Recorded straight-line depreciation on the truck. } \\\hline\\\hline 2010 & \\\hline \text { Jan. 5 } & \begin{array}{l}\text { Paid } \$ 5,000 \text { to put a bigger engine in the truck. This new engine is expected to } \\\text { make the truck run more efficiently, and will increase the truck's useful life by } \\\text { one year. The salvage value remained at } \$ 4,000 .\end{array} \\\hline \text { Mar. 1 } & \begin{array}{l}\text { Paid } \$ 2,000 \text { to replace a broken tailgate. The tailgate was damaged when a heavy } \\\text { carton was inadvertently dropped on it. }\end{array} \\\hline \text { Dec. 31 } & \text { Recorded straight-line depreciation on the truck. }\\\hline \end{array}$

Prepare the general journal entries to record these transactions.

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Definitions:

Internal Locus of Control

A psychological concept referring to individuals who believe they can control their life events and outcomes as opposed to external forces determining their fate.

Susceptible

The state of being likely or prone to be affected or influenced by a particular condition, influence, or disease.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Clinical Psychology Program

An academic and professional training program that prepares individuals to become professional psychologists, emphasizing the diagnosis and treatment of mental health issues.