EX 10-6 Capital and revenue expenditures

Reliable Move Company made the following expenditures on one of its delivery trucks:
Feb.  4. Replaced transmission at a cost of $4,300.
May   6. Paid $1,900 for installation of a hydraulic lift.
Sept. 10. Paid $60 to change the oil and air fi lter.

Prepare journal entries for each expenditure.

Answer:
Feb. 4 Accumulated Depreciation—Delivery Truck .... 4,300  
Cash................................................................  4,300
May 6 Delivery Truck..................................................... 1,900  
Cash................................................................  1,900  
Sept. 10 Repairs and Maintenance Expense................... 60  
Cash................................................................  60

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