Question
PB9-4 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
PB9-4 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 | , 2015 | Paid $165,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,500. |
July | 1 | , 2015 | Paid $43,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $8,600. |
October | 2 | , 2015 | Paid $500 cash to paint a small office in the warehouse building. |
October | 13 | , 2015 | Paid $100 cash to get the oil changed in the delivery van. |
December | 1 | , 2015 | Paid $105,000 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 | , 2015 | Recorded depreciation and amortization on the delivery van, warehouse building, and franchise right. |
June | 30 | , 2016 | Sold the warehouse building for $132,000 cash. (Record the depreciation on the building prior to recording its disposal.) |
December | 31 | , 2016 | 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.) |
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