On April 29, Welllington Co. paid $2,410 to repair the transmission on one of its delivery vans. In addition, Welllington paid $36 to install a GPS system in its van.

Question

Question Content Area
Journalize the entries for the transmission. If an amount box does not require an entry, leave it blank.

DateAccountDebitCredit
April 29

Question Content Area
Journalize the entry for GPS system expenditures. If an amount box does not require an entry, leave it blank.

DateAccountDebitCredit
April 29

Answer 1

To journalize the entries for the repairs and installation of the GPS system, you'll need to record each transaction in your accounting records. Here’s how you can do this:

Journal Entry for Transmission Repair

Date: April 29
Account: Repairs and Maintenance Expense
Debit: $2,410
Credit: Cash (or Accounts Payable, depending on how the payment was made)
Amount: $2,410

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Journal Entry for GPS System Installation

Date: April 29
Account: Equipment (or specific account for GPS if applicable)
Debit: $36
Credit: Cash (or Accounts Payable, depending on how the payment was made)
Amount: $36

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Here is how the entries look in a ledger format:

For Transmission Repair:

Date        Account                          Debit      Credit
--------------------------------------------------------------------
April 29    Repairs and Maintenance Expense  2,410     
            Cash (or Accounts Payable)                  2,410  

For GPS System Installation:

Date        Account                          Debit      Credit
--------------------------------------------------------------------
April 29    Equipment/GPS System             36         
            Cash (or Accounts Payable)                  36     

Make sure to adjust the account names according to your company's chart of accounts if necessary.