On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.

On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments

Section: Chapter Questions

Problem 12RE: Ricks Towing Company owns three tow trucks. During the current year, Rick performed maintenance on...

See similar textbooks

Related questions

Q: Cullumber Landscaping began construction of a new plant on December 1, 2020. On this date, the…

A: Capitalized costs are those costs that are added to the purchase price of the non-current assets to…

Q: Determine the total estimated cost at completion for the project and the variance for each cost…

A: Introduction: Cost: Cost can be defined as the expenses incurred by the organization for the purpose…

Q: On March 1, Imhoff Co. began construction of a small building. Payments of $800,000 were made…

A: Fixed Assets: It refers to the long-term assets having a useful life of more than a year which is,…

Q: Sub Sandwiches of America made the following expenditures related to its restaurant: 1. Replaced the…

Q: Cala Manufacturing purchases land for $373,000 as part of its plans to build a new plant. The…

A: Land cost = Purchase price + Cost of tear down the old building + Cost to fill and level the lot =…

Q: Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $180,000. Since the company made…

A: Any amount of money spent to generate the revenues in a business is known as expenses.

Q: On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $41,000 in…

A: Solution:- Calculation of the cost of land reported on the balance sheet as follows:-

Q: journal entries for each expenditure:

A: As per IAS 16 Significant expenditure incurred in order to generate future economic benefit of the…

Q: DAEBAK Landscaping began construction of a new plant on December 1, 2019. On this date, the company…

A: Part a:

Q: HP Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10,…

A: Equipment cost includes all cost such as - installation charges , slab rate charge , taxes etc.…

Q: DAEBAK Landscaping began construction of a new plant on December 1, 2019. On this date, the company…

A: Treatment of Purchase of Land and Cost of Demolition Cost of Land will include purchase price of…

Q: (The following information applies to the questions displayed below.) At the beginning of the year,…

Q: Several years ago, Health Services acquired a helicopter for use in emergency situations. Health…

Q: d. The timberland was purchased for $480,000 of which $125,000 relates to the land itself, and it is…

A: Journal entry refers to the concept of inspecting and documenting all the transactions done by a…

Q: Sheffield Landscaping began construction of a new plant on December 1,2020. On this date, the…

A: An asset is not just valued at the amount paid to acquire it but all the expenses that incur with…

Q: Charles Corp. purchased a new machine for its factory. The following lists shows the various…

A: Capitalized cost of the machine Particulars Amount Base purchase price $40,000 Sales tax…

Q: Bill's Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,180,…

A: Answer - As the Expenditure incurred on building enhanced the life of the assets given it has to…

Q: total amount should be charged to repairs and maintenance

A: We know that as per IAS 16 vis a vis IFRS 16, Property Plant and Equipment Repairs and maintenance…

Q: On August 1, 20x1, ABC Co. received a P1,800,000 grant from the government to aid in ABC Co.’s…

A: Government grants: This is given to a corporation by a state, federal, or local government to help…

Q: During June 2014, Green Grocer Inc. decided to build a new warehouse and purchased land for…

A: Costs Involved Particulars Amount $ Purchase cost of land 850000 Excavation cost 72000…

Q: A machine was purchased for $7,000, terms 2/10, n/60, FOB vendor's factory. The invoice was paid…

A: Given that, Cost of machine = $7,000 Trade discount = $7,000 * 2% = $140 Freight charges = $175…

Q: On January 1, 20x2, Kent Corporation purchased a machine for $50,000. Kent paid shopping expenses of…

A: In the case of fixed assets, only such expenses are capitalized that are necessary to bring the…

Q: Eagle Country Club has acquired a lot to construct a clubhouse. Eagle had the following costs…

A: As the questions asked has more than 1 question, the first question is answered. If you want the…

Q: During the fiscal year, ABC Company incurred the following costs related to property, plant and…

A: based on the nature of expenditure we will divide the expenses into the land, land development,…

Q: The following costs were incurred by Ivy Nomafo Ltd in 2020 in the design and construction of a new…

A: IAS 16 Property, plant and equipment is applicable on those property, plant and equipment that are…

Q: Miller Corp. purchased a new machine for its factory. The following lists shows the various…

A: Note: Insurance costs incurred for the transit to the destination is only capitalized to the assets.…

Q: Quality Move Company made the following expenditures on one of its delivery trucks:Mar. 20. Replaced…

A: Capital expenditure: It refers to the amount spent on acquiring, maintaining, and improving the…

Q: On August 1, 20x1, ABC Co. received 1,800,000 grant from the government to aid in ABC Co.’s clean-up…

A: As per our protocol we are supposed to answer first three sub-parts and you have asked two different…

Q: Cala Manufacturing purchases land for $297,000 as part of its plans to build a new plant. The…

A: A Journal entry is a primary entry that records the financial transactions initially. The…

Q: 1) Rocky Mountain Water Corporation paid $270,000 to purchase equipment for use in its manufacturing…

A: Equipment is the non-current asset that is used by the entities for the purpose of running the…

Q: Cullumber Landscaping began construction of a new plant on December 1, 2020. On this date, the…

A: Solution: Capitalizing of Land and Building cost: Land is generally considered to have an unlimited…

Q: Demmert Manufacturing incurred the following expenditures during the current fiscal year: annual…

A: Expenditures: The useful life of the plant assets signifies the time period, that the company…

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…

A: Depreciation is the amount of reduction in the value of an asset due to normal wear & tear,…

Q: Classify the following items as either revenue or capital expenditure: An extension to an office…

A: Since there are multiple sub parts it is possible to solve only 3 sub parts as per company policy.

Q: ABC Company replaced some parts of its factory building as well as its annual maintenance and upkeep…

A: This question deals with the IAS 16 - property, plant and equipment. As per the IAS 16, property…

Q: Gerald paid $1730 to install a lift which was hydraulic in nature and an air filter which costs $88…

A: Transactions of an organisation will be recorded initially through journal entries in the books of…

Q: On October 9, Wonder Inflatables Co. paid $1,150 to install a hydraulic lift and $40 for an air…

A: Expenses in reference to an asset till it is ready to put to use is capitalized in the books as part…

Q: Capital and Revenue Expenditures On April 29, GTS Co. paid $3,000 to install a hydraulic lift and…

A: Journal EntryJournal Entry is refers to the recording of monetary transactions which are related to…

Q: At the very beginning of Year 2 the hydrologist came back and estimated that as of that time there…

A: Cost depletion can be defined as the amount which is deductible in the books at the end of each year…

Q: Cala Manufacturing purchases land for $390,000 as part of its plans to build a new plant. The…

A: Introduction: A compound journal entry is a journal entry where there are more than two accounts…

Q: On the first day of the fiscal year, Alpha Corporation purchased a machine with a cost of $65,000.…

A: Depreciation It is a systematic allocation of the cost of an asset which is used in a business.…

Q: On November 15, 2021, Trade Company made payments for the following expenditures: Replacement…

A: Solution Concept The expenditures which increases the life of the assets and the operating…

Q: At the beginning of the year, Canary.com bought a shed, a machine, and a trailer. The shed initially…

A: The cost and expenses incurred on the acquisition of assets are capitalized when the expense is…

Q: ecessary journa

A: 1. Investment Property A/c Dr P3700000 To Bank A/c…

Q: Grieg Landscaping began construction of a new plant on December 1, 2020. On this date, the company…

Q: Cala Manufacturing purchases land for $459,000 as part of its plans to build a new plant. The…

A: The cost incurred to tear the old building on land and fill and level the lot at the time of…

Q: Family Services, a small social service nonprofit agency, began operations on January 1, 20X1, with…

A: 1. Expenses - Expenses are the recurring in nature. To earn revenue company incurred some expense…

Question

100%

On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40

for an air filter for one of its delivery trucks. Journalize the entries for the new lift and

air filter expenditures.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On October 9, Wonder Inflatables Co. paid $1,150 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks. Journalize the entries for the new lift and air filter expenditures.
Capital and Revenue Expenditures On April 29, GTS Co. paid $3,000 to install a hydraulic lift and $32 for an air filter for one of its delivery trucks. Journalize the entries for the new lift. April 29 Journalize the entry for air filter expenditures.
On April 15, Compton Co. paid $2,850 to upgrade a delivery truck and $75 for an oil change. Journalize the entries for the upgrade to delivery truck and oil change expenditures. If an amount box does not require an entry, leave it blank.
Quality Move Company made the following expenditures on one of its delivery trucks:Mar. 20. Replaced the transmission at a cost of $1,890.June 11. Paid $1,350 for installation of a hydraulic lift.Nov. 30. Paid $55 to change the oil and air filter.Prepare journal entries for each expenditure.
A company paid on April 29 RM1660 to install a hydraulic lift and 33 for an air filter for one of its delivery trucks. Prepare journal entries for the new lift.
Capital and Revenue Expenditures On April 29, Welllington Co. paid $1,530 to repair the transmission on one of its delivery vans. In addition, Welllington paid $46 to install a GPS system in its van. Question Content Area Journalize the entries for the transmission. If an amount box does not require an entry, leave it blank. April 29 - Select - - Select - - Select - - Select - Question Content Area Journalize the entry for GPS system expenditures. If an amount box does not require an entry, leave it blank. April 29 - Select - - Select - - Select - - Select -
Quality Freight Company made the following expenditures on one of its delivery trucks: Marc 20. Replaced the transmission at a cost of $1,890 June 11. Paid $1,350 for installation of a hydraulic lift Nov. 30. Paid $55 to change the oil and filter As the accountant of Quality Freight prepare journal entries for each expenditure:
Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,010, and the book value prior to the repair was $4,750. In addition, the company spent $6,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $89,300 and related Accumulated Depreciation account at $44,300. After the work was completed, what book value should Houston’s report on the balance sheet for the shredding machine and the building? Book Value Shreddding Machine Building
On April 15, Compton Co. paid $2,550 to upgrade a delivery truck and $65 for an oil change. Journalize the entries for the upgrade to delivery truck and oil change expenditures. If an amount box does not require an entry, leave it blank. April 15 April 15
Bill’s Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $1,550, and the book value prior to the repair was $6,500. In addition, the company spent $12,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $85,000 and related Accumulated Depreciation account at $32,000. Required After the work was completed, what book value should appear on the balance sheet for the tow truck and the building? TOW TRUCK: Building:
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated five machines for $100,000 to improve efficiency in production of their remaining useful life of five years Low-cost repairs throughout the year totaled $70,000 Replaced a broken gear on a machine for $10,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?
During the current year, Arkells Inc. made the following expenditures relating to plant machinery. Renovated seven machines for $250,000 to improve efficiency in production of their remaining useful life of eight years Low-cost repairs throughout the year totaled $79,000 Replaced a broken gear on a machine for $6,000 A. What amount should be expensed during the period? B. What amount should be capitalized during the period?