Quality Move Company made the following expenditures on one of its delivery trucks: Mar. 20. Replaced the transmission at a cost of $5,430. June 11. Paid $1,705 for installation of a hydraulic lift. Nov. 30. Paid $41 to change the oil and air filter. Prepare the journal entries for each expenditure.

The journal entries for each expenditure would be as follows:

                      Debit ($)Credit ($)

Mar. 20

Delivery Truck5,430  

  Cash                             5,430

June. 11

Delivery Truck1,705  

  Cash                           1,705

Nov. 30

Repairs and Maintenance Expense41  

   Cash                                                      41

Explanation:

According to the given data, the journal entries for each expenditure would be as follows:

                      Debit ($)Credit ($)

Mar. 20

Delivery Truck5,430  

  Cash                             5,430

(To record the replacement of transmission at a cost of $5,430 and capitalizingthe transmission cost)  

June. 11

Delivery Truck1,705  

  Cash                           1,705

(To record the installation of hydraulic lift and capitalization of installation expenses)  

Nov. 30

Repairs and Maintenance Expense41  

   Cash                                                      41

(To record the payment for changing the oil and air filter)  

answer; post closing trial balance;

since the options are not listed, when you are working on your budget you should also add water, tv, internet, miscellaneous and your 'fun' money for in your budget. when budgeting, you need to allow for fun money, and mis/accidental money so that you stick to the budget and not go crazy because you feel strapped to the budget.