Register
On August 4, Armstrong Trucking, Inc., paid $4,500 to replace the engine in one of its trucks. Required: Write the necessary journal entry.
114,713 views
23 votes
23 votes
On August 4, Armstrong Trucking, Inc., paid $4,500 to replace the engine in one of its trucks.

Required:
Write the necessary journal entry.

User Paul Verschoor
by
3.2k points

1 Answer

19 votes
19 votes

Answer and Explanation:

The journal entry is shown below:

Truck A/c Dr $4,500

To Cash A/c $4,500

(Being the truck is replaced for cash)

Here the truck is debited as it increased the assets and credited the cash as it decreased the assets

User DekuDesu
by
2.6k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers

Other Questions

If you buy a one-year bond for $4,000 and the issuer pays you back $5,000 at the end of one year, the interest rate on the bond is
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, while the income statement has EBIT of $93,000 and a total of $137,000 in depreciation
Kylie is risk averse and has $1,000 with which to make a financial investment. She has three options. Option A is a risk-free government bond that pays 5 percent interest each year for two years. Option
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that Group of answer choices bond interest is deductible for tax purposes. interest must be
Elroy Rocket is entering his senior year as an accounting major and has a number of options for his summer break. His options for the 3 month break follow: (1) Work full time at a local accounting firm
Link Copied!