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I need help with these journal entries. Thanks! (sorry about that, I just added the question to the problem) Jose Company purchased a building for
I need help with these journal entries. Thanks! (sorry about that, I just added the question to the problem)
Jose Company purchased a building for $200,000 and a delivery truck for $20,000. The following expenditures have been incurred during 2016: The building was painted at a cost of $1,000. To prevent leaking, new windows were installed in the building at a cost of 510,000. To improve production, a new conveyor system was installed in the building .it a cost of $40,000. The delivery truck was repainted with a new company logo at a cost of $1.000. To allow better handling of large loads, a hydraulic lift system was installed on the truck at a cost of $5.000. The truck's engine was overhauled at a cost of $4,000. Determine which of these costs should be capitalized. Also record the journal entry for the capitalized costs. Assume that ail costs were Incurred on January 1, 2016. Determine the amount of depreciation for the year 2016. The company uses the straight-line method and depreciates the building over 25 years and the truck over six years. Assume zero residential value for all-assets. Prepare the journal entry to record deprecation for 2026. How would the assets appear on the balance sheet of December 31, 2016? Capital expenditures are costs that improve an asset and are added to the asset account. Debit the asset account and credit Cash for amount paid. Revenue expenditures are costs that keep an asset In Its normal operating condition and treated as an expense. Prepare the journal entry with the impact on the financial statements to depreciation for 2016 on December 31Step by Step Solution
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