Harmon Company had the following two transactions related to its delivery truck: 1. Paid $43 for...

Question:

Harmon Company had the following two transactions related to its delivery truck:

1. Paid $43 for an oil change

2. Paid $402 to install special shelving units, which increase operating efficiency of the truck.

Prepare Harmon's journal entries to record these two transactions.

Property, Plant and Equipment

Property, plant and equipment are presented in the non current section of the balance sheet. These assets includes some depreciating assets. These are initially measured at cost. The amount capitalized in this account normally includes the acquisition or purchase price and the cost directly attributable in order for the asset to be ready for its use,

Answer and Explanation: 1

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Account titleDebitCredit
Expense $43
Cash $43
Delivery truck$402
Cash $ 402


The first transaction is just an ordinary maintenance, thus it...

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Acquisition of Property, Plant & Equipment

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Chapter 9 / Lesson 4
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One of the main categories of long-term assets is known as property, plant, and equipment, encompassing the location, buildings, and equipment needed in production. Learn how the acquisition of property, plant, and equipment is recorded and documented through an example of journaling.


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