On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks

On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.

Answer:

Aug. 7 Delivery Truck 1,675 Cash 1,675 7 Repairs and Maintenance Expense 40 Cash 40

Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $1,890.

Quality Move Company made the following expenditures on one of its delivery trucks:

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.

Prepare journal entries for each expenditure.

Answer:

Mar. 20 Accumulated Depreciation—Delivery Truck 1,890

Cash1,890

 June 11 Delivery Truck1,350

Cash1,350

 Nov. 30 Repairs and Maintenance Expense 55

Cash55