At the beginning of the year 2022, DeAngelo Caterering bought a $60,000 food truck. It will require $10,500 to ship to California. The custom paint job will cost $2,500 and the suspension will have to be customized to handle a brick oven, which will cost 3,000. Regular maintenance throughout the year will be $1,200. The truck is expected to last 5 years and the salvage value is $11,000. All expenditures paid in cash. Compute the total amount to be capitalized for the cost of the Food Truck and the journal entry required to record the total pruchase of the asset (Please show all calculations)

At the beginning of the year 2022, DeAngelo Caterering bought a $60,000 food truck. It will require $10,500 to ship to California. The custom paint job will cost $2,500 and the suspension will have to be customized to handle a brick oven, which will cost 3,000. Regular maintenance throughout the year will be $1,200. The truck is expected to last 5 years and the salvage value is $11,000. All expenditures paid in cash. Compute the total amount to be capitalized for the cost of the Food Truck and the journal entry required to record the total pruchase of the asset (Please show all calculations)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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