PE 10-1B Capital and revenue expenditures

On June 9, Martin Associates Co. paid $1,300 to repair the transmission on one of its delivery vans. In addition, Martin Associates paid $600 to install a GPS system in its van. Journalize the entries for the transmission and GPS system expenditures.

Answer:
June  9
Accumulated Depreciation—Delivery Van........ 1,300  
              Cash................................................................  1,300  
          9
Delivery Van........................................................ 600  
                     Cash................................................................  600

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