Instructions Quality Move Company made the following expenditures on one of its
ID: 2496599 • Letter: I
Question
Instructions
Quality Move Company made the following expenditures on one of its delivery trucks:
Prepare journal entries for each expenditure. Refer to the Chart of Accounts for exact wording of account titles.
Chart Of Accounts
Prepare journal entries for each expenditure. Refer to the Chart of Accounts for exact wording of account titles.
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Mar. 20. Replaced the transmission at a cost of $1,890. June 11. Paid $1,350 for installation of a hydraulic lift. Nov. 30. Paid $55 to change the oil and air filter.Explanation / Answer
Date Accounts and explanations Debit ($) Credit ($) Mar. 20 Delivery Truck 1,890 Cash 1,890 (To record the replacement of transmission at a cost of $1,890 and capitalizingthe transmission cost) June. 11 Delivery Truck 1,350 Cash 1,350 (To record the installation of hydraulic lift and capitalization of installation expenses) Nov. 30 Repairs and Maintenance Expense 55 Cash 55 (To record the payment for changing the oil and air filter)