Prepare Journal Entries to Record the Following Transactions of Salem $\$ 60,000$

question 144

Essay

Prepare journal entries to record the following transactions of Salem Sales Co. during the current year:
Mar 1 Purchased a truck for $\$ 60,000$ with a 6 year useful life and a $\$ 10,000$ residual value. Salem also paid $7 \%$ provincial sales tax, a $\$ 500$ annual truck license, $\$ 4,000$ to paint the truck and $\$ 2,300$ for spare parts. All payments were in cash.

Mar 12 Purchased a garage from a neighbouring business with a $\$ 60,000$ note payable. The seller's book value for the garage was $\$ 57,000$ and the garage was appraised at $\$ 68,000$ . The estimated useful life is 12 years. Salem also paid a $\$ 4,000$ cash for real estate commission.

June 5 Paid $\$ 750$ to replace garage windows broken during a hail storm.

Aug 23 Purchase used office equipment for $\$ 13,500$ plus provincial sales tax of $\$ 945$ terms $2 / 10$ , n 30 from Great West Office Supplies. As well, Salem paid freight of $\$ 300$ and reconditioning cost of $\$ 850$ on credit. Estimated useful life of 4 years and a residual value of $\$ 1,000$ .

Sept 12 Paid for office equipment purchased on August 23'd.

Oct 5 Purchased store equipment for $\$ 28,000$ plus $\$ 1,960$ in provincial sales tax. As well, Salem paid $\$ 1,750$ for repairs incurred from an accident during installation. $\$ 5,200$ for a special base for the equipment and $\$ 3,700$ of supplies to be used for regular preventive maintenance. Estimated useful life is 9 years and residual value is $\$ 1,300$ .

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Definitions:

Weak Organizational Culture

A situation where an organization's values, beliefs, and behaviors are not strongly shared or practiced among its members, leading to lack of unity and direction.

Subculture Elitism

The belief or attitude that one's own subculture is superior to others, often leading to exclusivity and discrimination.

Warfare among Subcultures

The conflicts or competition occurring between different subgroups within a broader culture, often marked by differing values or beliefs.

Virtual Organizations

Organizations that operate primarily through digital or electronic means, enabling remote work, digital collaboration, and operations without a fixed physical presence.