repare journal entries for each expenditure.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Quality Move Company made the following expenditures on one of its delivery trucks:
| Mar. 20 | Replaced the transmission at a cost of $1,990. |
| June 11 | Paid $1,455 for installation of a hydraulic lift. |
| Nov. 30 | Paid $57 to change the oil and air filter. |
Prepare journal entries for each expenditure. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTSQuality Move CompanyGeneral Ledger
ACCOUNTING EQUATION
| ASSETS | |
| 110 | Cash |
| 111 | Petty Cash |
| 112 | |
| 114 | Interest Receivable |
| 115 | Notes Receivable |
| 116 | Merchandise Inventory |
| 117 | Supplies |
| 119 | Prepaid Insurance |
| 120 | Land |
| 123 | Delivery Truck |
| 124 | |
| 125 | Equipment |
| 126 | Accumulated Depreciation-Equipment |
| 130 | Mineral Rights |
| 131 | Accumulated Depletion |
| 132 | |
| 133 | Patents |
| LIABILITIES | |
| 210 | Accounts Payable |
| 211 | Salaries Payable |
| 213 | Sales Tax Payable |
| 214 | Interest Payable |
| 215 | Notes Payable |
| EQUITY | |
| 310 | Owner's Capital |
| 311 | Owner's Drawing |
| REVENUE | |
| 410 | Sales |
| 610 | Interest Revenue |
| 620 | Gain on Sale of Delivery Truck |
| 621 | Gain on Sale of Equipment |
| EXPENSES | |
| 510 | Cost of Merchandise Sold |
| 520 | Salaries Expense |
| 521 | Advertising Expense |
| 522 | Depreciation Expense-Delivery Truck |
| 523 | Delivery Expense |
| 524 | Repairs and Maintenance Expense |
| 529 | Selling Expenses |
| 531 | Rent Expense |
| 532 | Depreciation Expense-Equipment |
| 533 | Depletion Expense |
| 534 | Amortization Expense-Patents |
| 535 | Insurance Expense |
| 536 | Supplies Expense |
| 539 | Miscellaneous Expense |
| 710 | Interest Expense |
| 720 | Loss on Sale of Delivery Truck |
| 721 | Loss on Sale of Equipment |
Prepare journal entries for each expenditure. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
JOURNAL
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