Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following transactions
Question:
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, 2015 Purchased food truck for $60,000 and paid $6,000 to have a commercial oven installed Other costs that she incurred are $6,000 for insurance the first year, and $3,000 to have the truck panted with her Samosa Shack logo Jessica estimates that the truck would last 5 years and have a $12,000 residual value.
October 1, 2015 The oven broke down and cost $1,800 to repair.
December 31, 2015 Recorded the adjusting entry for depreciation and insurance.
April 1, 2010 Replaced all of the tires with all-season tires for $1,800 and paid another year of insurance for 6,000.
December 31, 2016 Recorded the adjusting entry for depreciation, and insurance.
March 31, 2017 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 $27,000 for the truck and oven, which included $1.200 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 (If no entry is required for a transaction event select, "No journal entry required" in the first.
Service Management Operations Strategy Information Technology
ISBN: 978-0077841201
8th edition
Authors: James Fitzsimmons, Mona Fitzsimmons, Sanjeev Bordoloi