Problem -
On August 7, Green River Inflatables Co. paid $1,675 to install a hydraulic lift and $40 for an air filter for one of its delivery trucks.
Journalize the entries for the new lift and air filter expenditures. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
ASSETS
- 110Cash
- 111Petty Cash
- 112Accounts Receivable
- 114Interest Receivable
- 115Notes Receivable
- 116Merchandise Inventory
- 117Supplies
- 119Prepaid Insurance
- 120Land
- 123Delivery Truck
- 124Accumulated Depreciation-Delivery Truck
- 125Equipment
- 126Accumulated Depreciation-Equipment
- 130Mineral Rights
- 131Accumulated Depletion
- 132Goodwill
- 133Patents
LIABILITIES
- 210Accounts Payable
- 211Salaries Payable
- 213Sales Tax Payable
- 214Interest Payable
- 215Notes Payable
EQUITY
- 310Owner, Capital
- 311Owner, Drawing
- 312Income Summary
- REVENUE
- 410Sales
- 610Interest Revenue
- 620Gain on Sale of Delivery Truck
- 621Gain on Sale of Equipment
EXPENSES
- 510Cost of Merchandise Sold
- 520Salaries Expense
- 521Advertising Expense
- 522Depreciation Expense-Delivery Truck
- 523Delivery Expense
- 524Repairs and Maintenance Expense
- 529Selling Expenses
- 531Rent Expense
- 532Depreciation Expense-Equipment
- 533Depletion Expense
- 534Amortization Expense-Patents
- 535Insurance Expense
- 536Supplies Expense
- 539Miscellaneous Expense
- 710Interest Expense
- 720Loss on Sale of Delivery Truck
- 721Loss on Sale of Equipment