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P10-3B - Computing and Revising Depreciation; Revenue and Capital Expenditures Xpress Delivery Service completed the...

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P10-3B - Computing and Revising Depreciation; Revenue and Capital Expenditures Xpress Delivery Service completed the following transactions and events involving the purchase and operation of equipment for its business. 2014 Jan. 1 Paid $24,950 cash plus $1,950 in sales tax for a new delivery van that was estimated to have a five-year life and a $3,400 residual value. Van costs are recorded in the Equipment account. Jan. 3 Paid $1,550 to install sorting racks in the van for more accurate and quicker delivery of packages. This increases the estimated residual value of the van by another $200. Dec. 31 Recorded annual straight-line depreciation on the van. 2015 Jan. 1 Paid $1,970 to overhaul the van's engine, which increased the van's estimated useful life by two years. May 10 Paid $600 to repair the van after the driver backed it into a loading dock. Dec. 31 Record annual straight-line depreciation on the van. (Round to the nearest dollar.) Required Prepare joumal entries to record these transactions and events

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