Question

On August 4, Armstrong Trucking, Inc., paid $4,500 to replace the engine in one of its trucks.

Required:
Write the necessary journal entry.

Answer 1

Answer and Explanation:

The journal entry is shown below:

Truck A/c Dr $4,500

To Cash A/c $4,500

(Being the truck is replaced for cash)

Here the truck is debited as it increased the assets and credited the cash as it decreased the assets