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A. Boston Flowers, Inc. sells and delivers flowers. On January 1, 2019, the company purchased a new delivery van. The costs included: van $75,250; sales
A. Boston Flowers, Inc. sells and delivers flowers. On January 1, 2019, the company purchased a new delivery van. The costs included: van $75,250; sales tax $3,150; delivery cost $1,500; cost of insurance during delivery $100; and vehicle insurance covering the next 12 months $24,000. The company took out a long-term loan for the van purchase. Record all transactions. Date Account Titles & Explanation Ref. Debits Credits 01.01.19 B. Boston Flowers, Inc. uses straight-line depreciation and determined the van purchased in the previous question (A) had a useful life of 7 years with a residual value of $10,000. Record and analyze the journal entry for depreciation at 12/31/19. Date Account Titles & Explanation Ref. Debits Credits 12.31.19 Balance Sheet Income Statement Assets = Liabilities + Stockholders' Equity | Revenues - Expenses = Net Income
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