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Q 9.28: Prepare the journal entry if Bench Company purchases a delivery van for $22,175 with related expenditures of sales taxes $443, painting $225, vehicle license $210, and accident insurance $875.

User Giacecco
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Answer:

Dr Equipment $22,843

Dr Licence expenses $210

Dr Prepaid Insurance $875

Cr Cash $23,928

Step-by-step explanation:

Preparation of the journal entry for Bench Company

Based on the information given we were told that Company made the following transaction:

Purchase of delivery van for tha amount of $22,175

Sales taxes for the amount of $443

Painting for the amount of $225

Vehicle license for the amount of $210

Accident insurance for the amount of $875

Therefore based on the above Bench Company Journal entry will be recorded as:

Dr Equipment $22,843

($22,175+$443+$225)

Dr Licence expenses $210

Dr Prepaid Insurance $875

Cr Cash $23,928

User Hardik Virani
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