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PB9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9- 2, LO 9-3, LO 9-4, LO 9-5, LO 9-6] The
PB9-4 (Algo) Recording Transactions and Adjustments for Tangible and Intangible Assets [LO 9-1, LO 9- 2, LO 9-3, LO 9-4, LO 9-5, LO 9-6] The following transactions and adjusting entries were completed by a local delivery company called Fast Delivery. The company uses straight-line depreciation for delivery vehicles, double-declining-balance depreciation for buildings, and straight-line amortization for franchise rights. January 2, 2020 Paid $166,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,700. July 1, 2020 Paid $42,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $8,400. October 2, 2020 Paid $700 cash to paint a small office in the warehouse building. October 13, 2020 Paid $200 cash to get the oil changed in the delivery van. December 1, 2020 Paid $103,500 cash to UPS to begin operating Fast Delivery business as a franchise using the name The UPS Store. This franchise right expires in five years. December 31, 2020 Recorded depreciation and amortization on the delivery van, warehouse building, and franchise right. June 30, 2021 Sold the warehouse building for $133,000 cash. (Record the depreciation on the building prior to recording its disposal.) December 31, 2021 Recorded depreciation on the delivery van and amortization on the franchise right. Determined that the franchise right was not impaired in value. Required: Prepare the journal entries required on each of the above dates. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) 1 Record the purchase of a warehouse building for $166,000 cash. 2 Record the purchase of a delivery van for $42,000 cash. 3 Record the payment for painting a small office in the warehouse building for $700. 4 Record the payment for oil changes in the delivery van of $200. 5 Record the franchise rights purchased for $103,500 to allow for the operation of a fast delivery business
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