Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Record depreciation of oven. Record repairs for truck. Note: Enter debits before credits. Record the partial year depreciation of Truck. Note: Enter debits before credits.
Record depreciation of oven. Record repairs for truck. Note: Enter debits before credits. Record the partial year depreciation of Truck. Note: Enter debits before credits. Record purchase of food truck, oven and insurance. Record depreciation of truck. Record 1 year of insurance expense. Record the partial year depreciation of Oven. Record depreciation of truck. Note: Enter debits before credits. Record purchase of tires and insurance for year. 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. April 1, 2021 October 1, 2021 December 31, 2021 April 1, 2022 December 31, 2022 March 31, 2023 Purchased food truck for $81,000 and paid $8,100 to have a commercial oven installed. Other costs that she incurred are $8,100 for insurance on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $9,000 residual value. The oven is also expected to last 5 years and have a $600 residual value. The oven broke down and cost $2,400 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $3,000 and paid another year of insurance for $8,100. Recorded the adjusting entry for depreciation and insurance. Jessica was exhausted from the food truck business, and decided to go back to school and sell the food truck to her friend Mark. He paid her $33,000 for the truck and oven, which included $900 for the oven component. Note: The company calculates depreciation using the straight-line method to the nearest month. Required: Record all the entries for the 2 years that Jessica owned the truck, including the disposal of the truck and oven. Record insurance expense of 2021 for 9 months. Record depreciation of oven. Note: Enter debits before credits. Record the gain or loss on sale of truck. Note: Enter debits before credits
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started