EX 10-15 Capital and revenue expenditures

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