On January 1, 2012, a company purchased a motor vehicle to transport toxic chemical products. The...
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On January 1, 2012, a company purchased a motor vehicle to transport toxic chemical products. The motor vehicle had to be retired at the end of its useful life. The company paid 22,000 euros cash for the vehicle, and 2,600 euros cash for registration expenses. The useful life of the motor vehicle was 4 years, after which the company had to pay 4,300 euros for the vehicle retirement. The annual interest rate was 6%. After 2 years, the cost of retirement was estimated to be 5,200 euros due to new circumstances. At the end of the vehicle's useful life, the company retired it and applied the provision. Requirement: Journalize all the operations described above, from the purchase of the motor vehicle to its retirement. On January 1, 2012, a company purchased a motor vehicle to transport toxic chemical products. The motor vehicle had to be retired at the end of its useful life. The company paid 22,000 euros cash for the vehicle, and 2,600 euros cash for registration expenses. The useful life of the motor vehicle was 4 years, after which the company had to pay 4,300 euros for the vehicle retirement. The annual interest rate was 6%. After 2 years, the cost of retirement was estimated to be 5,200 euros due to new circumstances. At the end of the vehicle's useful life, the company retired it and applied the provision. Requirement: Journalize all the operations described above, from the purchase of the motor vehicle to its retirement.
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January 1 2012 Debit Cash 22000 Credit Vehicle 22000 Debit Cash 2600 Credit R... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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