Brief Exercise 9-03 Sunland Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck. Prepare Sunland Company's journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Business

Liam Suarez

24 June, 23:55

Brief Exercise 9-03 Sunland Company had the following two transactions related to its delivery truck. 1. Paid $38 for an oil change. 2. Paid $564 to install special shelving units, which increase the operating efficiency of the truck. Prepare Sunland Company's journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Jair Zimmerman · Answer 1

The journal entries are as follows:

(a) Maintenance and Repairs Expense A/c Dr. $38

To cash A/c $38

(To record the maintenance and repair expense)

(b) Equipment A/c Dr. $564

To cash A/c $564

(To record the expense to increase the operating efficiency of the truck)