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1) BC Log Corporation purchased a new logging truck on January 1, 2018. It cost $156,638 plus GST (5%) and PST (7%) and has
1) BC Log Corporation purchased a new logging truck on January 1, 2018. It cost $156,638 plus GST (5%) and PST (7%) and has an expected residual value of $45,000. Delivery costs were $4,000, insurance on delivery was $150 and oil and lubricants were $75. It is expected to last 8 years or 400,000 KM. a) Find the capital cost of the logging truck b) Prepare the journal entry on January 1st for the purchase of the logging truck:
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Survey of Accounting
Authors: Carl S. Warren
8th edition
1305961889, 978-1337517386, 1337517380, 978-1305961883
