Question

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.

Answer 1

Answer:

Dr Equipment $22,843

Dr Licence expenses $210

Drr Prepaid Insurance $875

Cr Cash $23,928

Explanation:

Journal entry for Bench Company

Dr Equipment $22,843

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

Dr Licence expenses $210

Dr Prepaid Insurance $875

Cr Cash $23,928