Assume that On Call Limousines completed the following transactions:

On Call Limousines’ amortization policy states that the company will take a full month’s amortization on purchases occurring up to and on the 15th day of the month and will not take any amortization for the month if the purchase occurs after the 15th day of the month.

Required

Record the transactions in the general journal, indicating whether each transaction amount should be capitalized as an asset or expensed. Round all calculations to the nearest dollar.

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2022 Jan. 5 6 9 Jun. 15 Dec. 31 Paid $40,000 cash for a used limousine. Set up an asset account called Limousines. Paid $4,000 to have the engine overhauled. Paid $1,500 to repair damage to the limousine as it sat in the parking lo Paid $600 for a minor tune-up after the limousine was put into use. Recorded amortization on the limousine by the DDB method. (Assume a 5-year life.)