Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies....

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Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase

Required: 1. Record the expenditures related to the vehicle on July 1, 2022. Note: The capitalized cost of the vehicle Equipm

business accounting

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Answer 1

Answer #1

amount to be capitalised:

purchase price	15,000
repainting and placing logos	6,000
additional amount spent on deluxe roof	2,750
amount to be capitalized	$23,750

Amount paid on insurance policy is a revenue expenditure.

Amount paid for annual maintenance will also be a revenue expenditure.

The following will be the journal entry on july 01 2022.

date	general journal	debit	credit
july 01 2022	Equipment - vehicle a/c	23,750
	........To cash a/c		23,750

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Answer 2

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Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies....

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