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Algoma Holiday Services (AHS) incurred the following transactions during 2022. They would like you to prepare all necessary journal entries for the year ended
Algoma Holiday Services (AHS) incurred the following transactions during 2022. They would like you to prepare all necessary journal entries for the year ended December 31st, 2022 [purchase of assets and depreciation] Show all work. All purchases took place on January 1, 2022. AHS purchased a truck for $56,000. The truck is being depreciated over 8 years on a straight-line basis. The estimated salvage value is $5,000. AHS purchased manufacturing equipment that cost $189,000. Transportation costs totaled $2,400, installation costs were $4,200 and the President's salary for the time he observed installation was calculated at $1,500. The equipment is being depreciated at rate of 20% per year with an estimated salvage value of $8,000. AHS purchased land and a building for $2,500,000. The market value of the land was appraised at $2,300,000 and the building was appraised at $450,000. The building is being depreciated over 25 years on a straight-line basis with no residual value.
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