Journal entries to record circle city transportation’s activity. Given information: Cost incurred for oil changes is $2,000. Cost incurred for filter changes is $5,000. Cost incurred for tire rotation is $3,000. Cost incurred for engine overhaul is $15,000. Cost for retrofitting buses to function as party busses is $40,000.

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Chapter 11, Problem 11.7BE

To determine

To prepare: Journal entries to record circle city transportation’s activity.

Given information:

Cost incurred for oil changes is $2,000.

Cost incurred for filter changes is $5,000.

Cost incurred for tire rotation is $3,000.

Cost incurred for engine overhaul is $15,000.

Cost for retrofitting buses to function as party busses is $40,000.

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