Lenard Company purchases a delivery truck on April 1, 2011, at a cash price of (SR...
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Lenard Company purchases a delivery truck on April 1, 2011, at a cash price of (SR 22,000). Related expenditures consist of sales taxes (SR 1,320), painting and lettering (SR 500), motor vehicle license (SR 80), and a three-year accident insurance policy (SR 1,600). Required: (a) Compute the cost of the delivery truck. (b) Prepare the journal entry for purchasing of the truck and related expenditures. Item Amount Cost of Truck GENERAL JOURNAL DATE EXPLANATION PR DEBIT CREDIT Lenard Company purchases a delivery truck on April 1, 2011, at a cash price of (SR 22,000). Related expenditures consist of sales taxes (SR 1,320), painting and lettering (SR 500), motor vehicle license (SR 80), and a three-year accident insurance policy (SR 1,600). Required: (a) Compute the cost of the delivery truck. (b) Prepare the journal entry for purchasing of the truck and related expenditures. Item Amount Cost of Truck GENERAL JOURNAL DATE EXPLANATION PR DEBIT CREDIT
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The purchase price sales tax registration charges compulsary first time insurance to use the vehicle ... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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