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:

Hospice care

Specialized care designed to provide support to those in the last phase of a terminal illness, focusing on comfort and quality of life.

Manage patient symptoms

The process undertaken by healthcare professionals to alleviate or control the symptoms experienced by patients, aiming to improve quality of life.

Dying

The process of approaching death, including the biological and emotional changes that occur in the final phase of life.

Wise person

An individual characterized by experience, knowledge, and good judgment.