Prepare a sampling of journal entries for long-term assets.

Use the second workbook page of the Excel template. Use the Delivery Vehicles account for all delivery vehicles/vans. Use Excel formulas in the cells to document your calculations.

Date	Transaction
Year 1
January 3	Purchased a new delivery van for $45,000 with a note payable.
January 10	Dan's Dependable Delivery paid $10,000 to patent a specially designed delivery vehicle lift system. The patent is for the maximum years. Record the payment to register the patent. Cash is paid.
March 13	Maintained delivery vehicles. Oil changes and general service work by Bill's Service Garage was completed, $200 on account.
April 20	Sold delivery vehicle for $8,000 cash. The original vehicle was purchased for $42,000 and had accumulated depreciation of $38,000.
May 10	Added a new transmission to a delivery van. The transmission was purchased and installed for $1000 on account, by Bill's Service Garage. It is estimated the transmission will extend the expected life by two years.
August 20	Discarded office furniture with a $250 book value. The furniture was originally purchased for $900.
September 5	New equipment was purchased on account for the office. The equipment cost $3500, and the installation, wiring, and set-up cost $1,000. There was cosmetic damage to the equipment in shipping and cost to repair it was $200. Record the transactions.

December 31	Record the first year's annual depreciation expense on the new delivery van in part one: #2 van.
December 31	Record the annual depreciation expense on the used delivery van from part one. #1 van.
December 31	Record one year's amortization on the patent.
Year 2
July 1	Sold the used delivery van in part 1 (van #1) for $10,000 cash. Update the depreciation expense on the used delivery van and record the sale.
September 1	Purchased a new delivery vehicle with an original cost of $48,000. A van with an original cost of $37,000 and accumulated depreciation of $30,000 was traded in for the new vehicle. The dealer gave a trade-in allowance of $5,000. Dan's Dependable Delivery paid for the new vehicle with a note payable. Record the exchange.