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  1. business
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  3. on january 1, year 1, marino moving company paid $

On January 1, Year 1, Marino Moving Company paid $48,000 cash to purchase a truck....

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Accounting

imageOn 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 an engine that would extend the useful life of the truck from a total of four years to a total of seven years. Which of the following journal entries would be required to record the capital expenditure 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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