Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions in managing her equipment over the first 2 years of her business. April 1, 2021 October 1, 2021 December 31, 2021 April 1, 2022 December 31, 2022 March 31, 2023 Purchased food truck for $60,000 and paid $6,000 to have a commercial oven installed. Other costs that she incurred are $6,000 for insurance on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $12,000 residual value. The oven is also expected to last 5 years and have a $1,200 residual value. The oven broke down and cost $1,800 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $1,800 and paid another year of insurance for $6,000. Recorded the adjusting entry for depreciation and insurance. Jessica was exhausted from the food truck business, and decided to go back to school and sell the food truck to her friend Mark. He paid her $27,000 for the truck and oven, which included $1,200 for the oven component. Note: The company calculates depreciation using the straight-line method to the nearest month. Required: Record all the entries for the 2 years that Jessica owned the truck, including the disposal of the truck and oven. View transaction list View journal entry worksheet No Date General Journal 1 April 01, 2021 Food truck Debit Credit No Date General Journal Debit Credit 1 April 01, 2021 Food truck Oven 、 2 、 Prepaid insurance Cash October 01, 2021 Repairs expense Cash 3 December 31, 2021 No Transaction Recorded 4 December 31, 2021 No Transaction Recorded 5 December 31, 2021 No Transaction Recorded 6 April 01, 2022 Prepaid insurance Repairs expense Cash 7 December 31, 2022 No Transaction Recorded December 31, 8 No Transaction Recorded 2022
Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions in managing her equipment over the first 2 years of her business. April 1, 2021 October 1, 2021 December 31, 2021 April 1, 2022 December 31, 2022 March 31, 2023 Purchased food truck for $60,000 and paid $6,000 to have a commercial oven installed. Other costs that she incurred are $6,000 for insurance on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $12,000 residual value. The oven is also expected to last 5 years and have a $1,200 residual value. The oven broke down and cost $1,800 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $1,800 and paid another year of insurance for $6,000. Recorded the adjusting entry for depreciation and insurance. Jessica was exhausted from the food truck business, and decided to go back to school and sell the food truck to her friend Mark. He paid her $27,000 for the truck and oven, which included $1,200 for the oven component. Note: The company calculates depreciation using the straight-line method to the nearest month. Required: Record all the entries for the 2 years that Jessica owned the truck, including the disposal of the truck and oven. View transaction list View journal entry worksheet No Date General Journal 1 April 01, 2021 Food truck Debit Credit No Date General Journal Debit Credit 1 April 01, 2021 Food truck Oven 、 2 、 Prepaid insurance Cash October 01, 2021 Repairs expense Cash 3 December 31, 2021 No Transaction Recorded 4 December 31, 2021 No Transaction Recorded 5 December 31, 2021 No Transaction Recorded 6 April 01, 2022 Prepaid insurance Repairs expense Cash 7 December 31, 2022 No Transaction Recorded December 31, 8 No Transaction Recorded 2022
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 64P
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Question
har.3
Transcribed Image Text:Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions in managing
her equipment over the first 2 years of her business.
April 1, 2021
October 1, 2021
December 31, 2021
April 1, 2022
December 31, 2022
March 31, 2023
Purchased food truck for $60,000 and paid $6,000 to have a commercial oven installed. Other costs
that she incurred are $6,000 for insurance on the truck for the first year, and $3,000 to have
the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years
and have a $12,000 residual value. The oven is also expected to last 5 years and have a $1,200
residual value.
The oven broke down and cost $1,800 to repair.
Recorded the adjusting entry for depreciation and insurance.
Replaced all of the tires with all-season tires for $1,800 and paid another year of insurance for
$6,000.
Recorded the adjusting entry for depreciation and insurance.
Jessica was exhausted from the food truck business, and decided to go back to school and sell the
food truck to her friend Mark. He paid her $27,000 for the truck and oven, which included $1,200
for the oven component.
Note: The company calculates depreciation using the straight-line method to the nearest month.
Required:
Record all the entries for the 2 years that Jessica owned the truck, including the disposal of the truck and oven.
View transaction list
View journal entry worksheet
No
Date
General Journal
1
April 01, 2021
Food truck
Debit
Credit
Transcribed Image Text:No
Date
General Journal
Debit
Credit
1
April 01, 2021
Food truck
Oven
、
2
、
Prepaid insurance
Cash
October 01, 2021 Repairs expense
Cash
3
December 31,
2021
No Transaction Recorded
4
December 31,
2021
No Transaction Recorded
5
December 31,
2021
No Transaction Recorded
6
April 01, 2022
Prepaid insurance
Repairs expense
Cash
7
December 31,
2022
No Transaction Recorded
December 31,
8
No Transaction Recorded
2022
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