Prepare Journal Entries to Record the Following Transactions of a Company

question 99

Essay

Prepare journal entries to record the following transactions of a company during the current year:
$\begin{array}{|l|l|}\hline\text { Mar. 1 } & \begin{array}{l}\text { Purchased a truck for } \$ 30,000 \text { with a five-year useful life and a } \$ 5,000 \text { salvage } \\\text { value. Also paid } 6 \% \text { sales tax, } \$ 350 \text { for the annual truck license, } \$ 500 \text { to paint the } \\\text { truck with the company's colors and name, and } \$ 1,500 \text { for spare parts. All } \\\text { payments were in cash. }\end{array} \\\hline \text { May 10 } & \begin{array}{l}\text { Purchased a garage from a neighboring business with a } 7 \% \text {, four-year, } \$ 75,000 \\\text { note. The seller's book value for the garage was } \$ 42,750 \text {. The estimated remaining } \\\text { useful life of the garage is } 10 \text { years. }\end{array} \\\hline \text { June 1 } & \text { Paid } \$ 1,000 \text { cash to replace (uninsured) garage windows broken during a storm. } \\\hline \text { Aug. 25 } & \begin{array}{l}\text { Purchased used office equipment for } \$ 14,700 \text { cash. Sales tax was } \$ 825 \text {, freight } \\\text { costs } \$ 250 \text {, and reconditioning costs } \$ 900 \text {, all of which were paid in cash. The } \\\text { estimated useful life of the equipment is } 3 \text { years and salvage value is } \$ 500 .\end{array} \\\hline \text { Oct. 5 } & \begin{array}{l}\text { Purchased store equipment for } \$ 24,500 \text { cash. Paid } \$ 1,470 \text { in sales tax, } \$ 550 \text { for } \\\text { repairs incurred from an accident during installation, } \$ 3,200 \text { for a special base to } \\\text { house the equipment, and } \$ 2,600 \text { for supplies to be used during periodic preventive } \\\text { maintenance. The estimated useful life of the equipment is eight years and salvage } \\\text { value is } \$ 1,200 .\end{array}\\\hline\end{array}$

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Definitions:

Relationship Management

Strategies and practices for maintaining, improving, and leveraging relationships with both current and potential clients, stakeholders, or partners.

Negative Situation

An adverse or undesirable circumstance or event that can cause stress, harm, or challenge.

Cultural Script

Implicit social norms and patterns of behavior that are learned and shared within a cultural group, guiding interactions and expectations.

Wooden Leg

An artificial limb made of wood used to support someone who has lost a leg.