A-l Wrecker Service has just completed a minor repair on a tow truck. The repair cost was

Question:

A-l Wrecker Service has just completed a minor repair on a tow truck. The repair cost was $830, and the book value prior to the repair was $7,200. 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 $85,000 and related Accumulated Depreciation account at $32,000.

Required
After the work was completed, what book value should appear on the for the tow truck and the building?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...