On July 1, 2021, ABC purchased a car for the business purpose and paid $30,000. The car’s useful life time is five years and its salvage value is $12,000. Make a journal entry on July 1. Make a journal entry on December 31, 2021. Make a journal entry on December 31, 2022.

On July 1, 2021, ABC purchased a car for the business purpose and paid $30,000. The car’s useful life time is five years and its salvage value is $12,000. Make a journal entry on July 1. Make a journal entry on December 31, 2021. Make a journal entry on December 31, 2022.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On July 1, 2021, ABC purchased a car for the business purpose and paid $30,000. The car’s useful life time is five years and its salvage value is $12,000.

Make a journal entry on July 1.
Make a journal entry on December 31, 2021.
Make a journal entry on December 31, 2022.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

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