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sleet_krkn [62]
2 years ago
13

Novak Company had the following two transactions related to its delivery truck.

Business
1 answer:
xxTIMURxx [149]2 years ago
3 0

Answer and Explanation:

The Journal entries are shown below:-

1. Maintenance and Repairs Expense Dr, $150

              To Cash $150

(Being cash paid is recorded)

Here we debited the maintenance and Repairs Expense as expenses are increasing and we credited the cash as assets are decreasing.

2) Equipment $700

           To Cash $700

(Being cash paid is recorded)

Here we debited the equipment as assets are increasing and we credited the cash as assets are decreasing

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Answer:

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During year 2, they will record the warranty expense for that year:

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