Jessica Grewal decided to open a food truck business, the Samosa Shack. She encountered the following...

  

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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 on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $12,000 residual value. The oven is also expected to last 5 years and have a $900 residual value. The oven broke down and cost $3,000 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $3,000 and paid another year of insurance for $6,000. Recorded the adjusting entry for depreciation, and insurance. 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. October 1, 2015 December 31, 2015 April 1, 2016 December 31, 2016 March 31, 2017 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 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date April 01, 2015 Record entry 4 5 Record to purchase of food truck, oven and insurance. 6 General Journal Clear entry 7 8 Debit 12 Credit View general journal > required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 Record to repairs for truck. 3 Note: Enter debits before credits. Date October 01, 2015 Record entry 4 5 6 7 General Journal Clear entry 8 ..... Debit 12 Credit View general journal Journal entry worksheet < 1 2 3 Record insurance expense of 2015 for 9 months. Note: Enter debits before credits. Date December 31, 2015 Record entry 4 5 6 7 General Journal Clear entry 8 ..... Debit 12 Credit View general journal > Journal entry worksheet < 1 2 3 Record to depreciation of truck. Note: Enter debits before credits. Date December 31, 2015 Record entry 4 5 6 7 General Journal Clear entry 8 ***** Debit 12 Credit View general journal Journal entry worksheet < 1 2 3 4 Record depreciation of oven. Note: Enter debits before credits. Date December 31, 2015 Record entry 5 6 General Journal Clear entry 7 8 ***** Debit 12 Credit View general journal Journal entry worksheet < 1 2 3 4 5 6 Record to purchase of tires and insurance for year. Note: Enter debits before credits. Date April 01, 2016 Record entry General Journal Clear entry 7 8 Debit 12 Credit View general Journal Journal entry worksheet < 1 2 3 4 5 Record to 1 year of insurance expense. Note: Enter debits before credits. Date December 31, 2016 Record entry 6 General Journal Clear entry 7 8 ***** 12 Debit Credit View general journal Journal entry worksheet < 1 2 Record to depreciation of truck. 3 4 5 Note: Enter debits before credits. Date December 31, 2016 Record entry 6 General Journal Clear entry 7 8 .... Debit 12 Credit View general journal Journal entry worksheet < 1 .... 4 Record to depreciation of oven. Date Note: Enter debits before credits. 5 6 December 31, 2016 Record entry 7 General Journal Clear entry 8 9 **** Debit 12 Credit View general journal Journal entry worksheet < 1 ... 5 6 7 8 9 Record to partial year depreciation of Truck. Note: Enter debits before credits. Date March 31, 2017 Record entry General Journal Clear entry 10 .... Debit 12 Credit View general journal > Journal entry worksheet < 1 ... 5 6 7 8 9 Record to partial year depreciation of Oven. Note: Enter debits before credits. Date March 31, 2017 Record entry General Journal Clear entry 10 11 Debit 12 Credit View general journal Journal entry worksheet < 1 ... 5 6 7 8 9 10 11 Record to loss on sale of truck. Note: Enter debits before credits. Date March 31, 2017 Record entry General Journal Clear entry Debit 12 Credit View general journal 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 on the truck for the first year, and $3,000 to have the truck painted with her Samosa Shack logo. Jessica estimates that the truck would last 5 years and have a $12,000 residual value. The oven is also expected to last 5 years and have a $900 residual value. The oven broke down and cost $3,000 to repair. Recorded the adjusting entry for depreciation and insurance. Replaced all of the tires with all-season tires for $3,000 and paid another year of insurance for $6,000. Recorded the adjusting entry for depreciation, and insurance. 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. October 1, 2015 December 31, 2015 April 1, 2016 December 31, 2016 March 31, 2017 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 View transaction list Journal entry worksheet < 1 2 3 Note: Enter debits before credits. Date April 01, 2015 Record entry 4 5 Record to purchase of food truck, oven and insurance. 6 General Journal Clear entry 7 8 Debit 12 Credit View general journal > required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet 1 2 Record to repairs for truck. 3 Note: Enter debits before credits. Date October 01, 2015 Record entry 4 5 6 7 General Journal Clear entry 8 ..... Debit 12 Credit View general journal Journal entry worksheet < 1 2 3 Record insurance expense of 2015 for 9 months. Note: Enter debits before credits. Date December 31, 2015 Record entry 4 5 6 7 General Journal Clear entry 8 ..... Debit 12 Credit View general journal > Journal entry worksheet < 1 2 3 Record to depreciation of truck. Note: Enter debits before credits. Date December 31, 2015 Record entry 4 5 6 7 General Journal Clear entry 8 ***** Debit 12 Credit View general journal Journal entry worksheet < 1 2 3 4 Record depreciation of oven. Note: Enter debits before credits. Date December 31, 2015 Record entry 5 6 General Journal Clear entry 7 8 ***** Debit 12 Credit View general journal Journal entry worksheet < 1 2 3 4 5 6 Record to purchase of tires and insurance for year. Note: Enter debits before credits. Date April 01, 2016 Record entry General Journal Clear entry 7 8 Debit 12 Credit View general Journal Journal entry worksheet < 1 2 3 4 5 Record to 1 year of insurance expense. Note: Enter debits before credits. Date December 31, 2016 Record entry 6 General Journal Clear entry 7 8 ***** 12 Debit Credit View general journal Journal entry worksheet < 1 2 Record to depreciation of truck. 3 4 5 Note: Enter debits before credits. Date December 31, 2016 Record entry 6 General Journal Clear entry 7 8 .... Debit 12 Credit View general journal Journal entry worksheet < 1 .... 4 Record to depreciation of oven. Date Note: Enter debits before credits. 5 6 December 31, 2016 Record entry 7 General Journal Clear entry 8 9 **** Debit 12 Credit View general journal Journal entry worksheet < 1 ... 5 6 7 8 9 Record to partial year depreciation of Truck. Note: Enter debits before credits. Date March 31, 2017 Record entry General Journal Clear entry 10 .... Debit 12 Credit View general journal > Journal entry worksheet < 1 ... 5 6 7 8 9 Record to partial year depreciation of Oven. Note: Enter debits before credits. Date March 31, 2017 Record entry General Journal Clear entry 10 11 Debit 12 Credit View general journal Journal entry worksheet < 1 ... 5 6 7 8 9 10 11 Record to loss on sale of truck. Note: Enter debits before credits. Date March 31, 2017 Record entry General Journal Clear entry Debit 12 Credit View general journal

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