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26 December, 07:35

Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $5,430. June 11. Paid $1,705 for installation of a hydraulic lift. Nov. 30. Paid $41 to change the oil and air filter. Prepare the journal entries for each expenditure.

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  1. 26 December, 08:01
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    The journal entries for each expenditure would be as follows:

    Debit ($) Credit ($)

    Mar. 20

    Delivery Truck 5,430

    Cash 5,430

    June. 11

    Delivery Truck 1,705

    Cash 1,705

    Nov. 30

    Repairs and Maintenance Expense 41

    Cash 41

    Explanation:

    According to the given data, the journal entries for each expenditure would be as follows:

    Debit ($) Credit ($)

    Mar. 20

    Delivery Truck 5,430

    Cash 5,430

    (To record the replacement of transmission at a cost of $5,430 and capitalizingthe transmission cost)

    June. 11

    Delivery Truck 1,705

    Cash 1,705

    (To record the installation of hydraulic lift and capitalization of installation expenses)

    Nov. 30

    Repairs and Maintenance Expense 41

    Cash 41

    (To record the payment for changing the oil and air filter)
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