.Prepare journal entries to record the following transactions of Salem Sales Co. during the current

year:

Mar 1 Purchased a truck for $50,000 with a 5 year useful life and a $10,000 residual value. Salem also paid 7% provincial sales tax, a $500 annual

truck license, $3,000 to paint the truck and $1,300 for spare parts. All payments were in cash.

May 12 Purchased a garage from a neighboring business with a $50,000 note payable. The seller's book value for the garage was $47,000 and the

garage was appraised at $58,000. The estimated useful life is 12 years. Salem also paid $3,000 cash for real estate commission.

Jun 5 Paid $550 to replace garage windows broken during a hail storm.

Aug 23 Purchase used office equipment for $12,500 plus provincial sales tax of $875, terms 2/10, n30 from Great West Office Supplies. As well,

Salem paid freight of $200 and reconditioning costs of $950 on credit. Estimated useful life of 4 years and a residual value of $1,000.

Sep 12 Paid for office equipment purchased on August 23.

Oct 5 Purchased store equipment for $26,700 plus $1,869 provincial sales tax. As well, Salem paid $750 for repairs incurred from an accident

during installation, $4,200 for a special base for the equipment and $3,700 of supplies to be used for regular preventive maintenance.

Estimated useful life is 9 years and residual value is $1,300.