Kevin Company........... prepare the journal entries to record all of the transa
ID: 2377241 • Letter: K
Question
Kevin Company........... prepare the journal entries to record all of the transactions listed below.
Kevin Company hjad the following transactions involving plant assets during 2008 and 2009. Unless otherwise indicated, all transactions were for cash.
Jan 2: Purchases a truck for $50,000 plus sales taxes of $3,000. The Truck is expected to have a $4,000 salvage value and a 4 year life Jan 5: Paid $5,000 to put a bigger engine in the truck. The new engine is expected to make the truck run more efficiently and will increase the truck
Explanation / Answer
DR Fixed assets- vehicles 53,000
CR Cash 53,000
DR Fixed assets-vehicles 5,000
CR Cash 5,000
DR Fixed Assets-vehicles 1,500
CR Cash 1,500
DR Repairs and Maintenance 2,000
CR Cash 2,000
DR Depreciation expense 11,100 (50,000+3,000+5,000+1,500-4,000)/5
CR Accululated depreciation-vehicles 11,100
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