PE 10-5A Capital and revenue expenditures

On February 14, Garcia Associates Co. paid $2,300 to repair the transmission on one of its delivery vans. In addition, Garcia paid $450 to install a GPS system in its van. Journalize the entries for the transmission and GPS system expenditures.


Answer:
14 Accumulated Depreciation—Delivery Van 2,300 Cash 2,300 14 Delivery Van 450 Cash 450