Prepare Journal Entries to Record the Following Transactions of Salem $\quad$

question 52

Essay

Prepare journal entries to record the following transactions of Salem Sales Co.during the current year:
Mar 1 $\quad$ Purchased a truck for $\$ 60,000$ with a 6 year useful life and a $\$ 10,000$ residual value. Salem also paid
$\quad$$\quad$$\quad$ $7 \%$ provincial sales tax, a $\$ 500$ annual truck license, $\$ 4,000$ to paint the truck and $\$ 2,300$ for spare
$\quad$$\quad$$\quad$ parts. All payments were in cash.
Mar 12 $\quad$ Purchased a garage from a neighbouring business with a $\$ 60,000$ note payable. The seller's book value
$\quad$$\quad$$\quad$ for the garage was $\$ 57,000$ and the garage was appraised at $\$ 68,000$ . The estimated useful life is 12 years. Salem also
$\quad$$\quad$$\quad$ paid a $\$ 4,000$ cash for real estate commission.
June 5 $\quad$ Paid $\$ 750$ to replace garage windows broken during a hail storm.
Aug 23 $\quad$ Purchase used office equipment for $\$ 13,500$ plus provincial sales tax of $\$ 945$ terms $2 / 10, \mathrm{n} 30$ from
$\quad$$\quad$$\quad$ Great West Office Supplies. As well, Salem paid freight of $\$ 300$ and reconditioning cost of $\$ 850$ on
$\quad$$\quad$$\quad$ credit. Estimated useful life of 4 years and a residual value of $\$ 1,000$ .
Sept 12 $\quad$ Paid for office equipment purchased on August 23'd.
Oct 5 $\quad$ Purchased store equipment for $\$ 28,000$ plus $\$ 1,960$ in provincial sales tax. As well, Salem paid $\$ 1,750$
$\quad$$\quad$$\quad$ for repairs incurred from an accident during installation. $\$ 5,200$ for a special base for the equipment
$\quad$$\quad$$\quad$ and $\$ 3,700$ of supplies to be used for regular preventive maintenance. Estimated useful life is 9 years
$\quad$$\quad$$\quad$ and residual value is $\$ 1,300$ .

---

Definitions:

Employment

The condition of having paid work, a job, or a professional occupation.

Non-Unionized Business

A workplace where the workforce is not represented by a labor union, affecting collective bargaining and worker rights.

Employment Contract

A formal agreement between an employer and employee that outlines the terms and conditions of employment.

Common Law

refers to law derived from judicial decisions of courts and similar tribunals, as opposed to statutes or regulations.