Prepare Journal Entries to Record the Following Transactions of a Company

question 191

Essay

Prepare journal entries to record the following transactions of a company during the current year:
$\begin{array}{|l|l|}\hline \text { Mar. 1 } & \begin{array}{l}\text { Purchased a truck for } \$ 30,000 \text { with a 5-year useful life and a } \$ 5,000 \text { salvage value. } \\\text { Also paid } 6 \% \text { sales tax, } \$ 350 \text { for the annual truck license, } \$ 500 \text { to paint the truck } \\\text { with the company's colors and name, and } \$ 1,500 \text { for spare parts. All payments } \\\text { were in cash. }\end{array} \\\hline \text { May 10 } & \begin{array}{l}\text { Purchased a garage from a neighboring business with a } 7 \%, 4-\text { year, } \$ 75,000 \text { note. } \\\text { The seller's book value for the garage was } \$ 42,750 . \text { The estimated remaining } \\\text { useful life of the garage is } 10 \text { years. }\end{array} \\\hline \text { June 1 } & \text { Paid } \$ 1,000 \text { cash to replace (uninsured) garage windows broken during a storm. } \\\hline \text { Aug 25 } & \begin{array}{l}\text { Purchased used office equipment for } \$ 14,700 \text { cash. Sales tax was } \$ 825, \text { freight } \\\text { costs } \$ 250, \text { and reconditioning costs } \$ 900, \text { all of which were paid in cash. The } \\\text { estimated useful life of the equipment is 3 years and salvage value is } \$ 500 .\end{array} \\\hline \text { Oct. 5 } & \begin{array}{l}\text { Purchased store equipment for } \$ 24,500 \text { cash. Paid } \$ 1,470 \text { in sales tax. } \$ 550 \text { for } \\\text { repairs incurred from an accident during installation, } \$ 3,200 \text { for a special base to } \\\text { house the equipment, and } \$ 2,600 \text { for supplies to be used during periodic preventive } \\\text { maintenance. The estimated useful life of the equipment is } 8 \text { years and salvage } \\\text { value is } \$ 1,200 .\end{array} \\\hline\end{array}$

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Definitions:

Cephalexin

An antibiotic used to treat a wide variety of bacterial infections, particularly those involving the respiratory tract, skin, and urinary system.

Antidiarrheal Agent

A medication used to reduce the frequency of diarrhea or to slow the passage of stool through the intestine.

Loose Stools

Bowel movements that are not solid but are not as liquid as those in diarrhea; often a sign of a mild digestive issue.

Developmental Maturation

The process of growth and development in individuals, encompassing physical, cognitive, and psychological changes over time.