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1 to 12 enteries please ASAP Exercise 9-35 Purchase equipment, depreciation, disposal of equipment LO2, 3, 6 Jessica Grewal decided to open a food truck
1 to 12 enteries please ASAP
Exercise 9-35 Purchase equipment, depreciation, disposal of equipment LO2, 3, 6 Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions in managing her equipment over the first 2 years of her business. Apri1 1, 2921 October 1, 2621 December 31,2821 Apri1 1, 2022 December 31,2822 March 31,2023 Purchased food truck for $75,600 and paid $7,509 to have a commercial oven insta1led. other costs that she incurred are $7,506 for insurance on the truck for the first year, and 59,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $6,e residual value. The oven is also expected to last 5 years and have a $600 residual value. The oven broke dewn and cost $3,009 to repain. Recorded the adjusting entry for depreciation and insurance. Replaced al1 of the tires with all-season tires for $3,009 and paid another year of insurance for $7,500. Recorded the adjusting entry for depreciation and insurance. Jessica was exhausted from the food track business, and decided to go back to school and sel1 the food truck to her friend Mark. He paid her $36,000 for the truck and oven, which included $6e for the oven component. Note: The company calculates depreciation using the straight-llne method to the nearest month Journal entrv worksheet Step by Step Solution
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