Rojo’s Roses Co. received an invoice for replacement of the engine on its main delivery van. The replacement will extend the life of the van an additional three years. The entry to record receipt of the invoice would include which entries?

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14.07.2022 - 18:52

Rojo’s Roses Co. received an invoice for replacement of the engine on its main delivery van. The replacement will extend the life of the van an additional three years. The entry to record receipt of the invoice would include which entries?

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Rojo’s Roses Co. received an invoice for replacement of the engine on its main delivery van. The replacement will extend the life of the van an additional three years. The entry to record receipt of the invoice would include which entries?

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Twila April 1, 2023 в 19:06

The entry to record receipt of the invoice for the engine replacement on Rojo's Roses Co.'s main delivery van would include the following: Debit: Delivery Van (Asset account) Credit: Accounts Payable (Liability account) This entry is necessary to recognize the liability owed to the vendor for the engine replacement. The asset account for the delivery van will not be directly affected by this entry, but it will reflect the increased value due to the extended lifespan. Once the payment is made, a new entry will be necessary to reflect the cash paid and the reduction in the liability account.

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