On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck....
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On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. Marino uses the straight-line method. On January 1, Year 3, Marinos accounting records contained the balances shown in the following financial statements model. Picture Also, on January 1, Year 3 the company paid $10,000 to replace the engine to make the truck better by enabling it to operate using less expensive natural gas. Which of the following shows the journal entry that would be necessary to replace the engine on January 1, Year 3?
Balance Sheet Cash Flow Assets Income Statement Statement Rev.Exp. Net Inc. Cash + Truck - Acc. Dep Liab. Equity| 25,000 48,00020,000 NA 53,000 NA NA NA
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On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck. The truck was expected to have a four year useful life and an $8,000 salvage value. Marino uses the straight-line method. On January 1, Year 3, Marinos accounting records contained the balances shown in the following financial statements model. Picture Also, on January 1, Year 3 the company paid $10,000 to replace the engine to make the truck better by enabling it to operate using less expensive natural gas. Which of the following shows the journal entry that would be necessary to replace the engine on January 1, Year 3?