Question 2

On August 4, 2018, Turbo Delivery Inc. brought its delivery truck to a garage, which upgraded the truck's exhaust system to increase its fuel efficiency. An engine was also replaced to extend the useful life of the truck by three years. In addition, the garage completed an oil change on the truck. The oil change is part of routine maintenance, which takes place every few months. The invoice from the garage shows the exhaust system upgrade cost $2,480, the engine replacement cost $950, and the oil change cost $120. Turbo Delivery Inc. will pay for this invoice next month. Prepare the journal entries to record the exhaust system upgrade, engine replacement and oil change on August 4. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Aug 4 To record exhaust system upgrade Aug 4 To record engine replacement Aug 4 To record oil change 1 Accounts Payable Accounts Receivable Accumulated Depreciation Building Cash Delivery Truck Depreciation Expense Land Machinery Notes Payable Notes Receivable Rent Expense Repairs and Maintenance Expense Salaries Expense Sales Revenue