Red$$s Bike Shop's year end is December $31.$ Some of the transactions are:

$$ March $1$Paid $$190,000$ cash to purchase the following assets:

Market Est. Useful Est. Residual

Asset Value Life Value

Land $ $88,000--$

Building $132,00025$ years $$14,000$

Red$$s Bike Shop plans to use the straight$-$line amortization method for the building, using months as the basis.

$$ April $15$Purchased a used pickup truck for $$10,500$ cash. The truck is expected to be used for $8$ years and driven $120,000$ kilometres. The estimated residual value is $$3,900.$ It will be amortized using the units$-$of$-$production method.

$$ April $16$Installed heavy$-$duty racks costing $$1,400$ that will enable the truck to carry several bicycles.

$$ June $30$Paid John's Garage for an oil change $($$$35)$ and a new muffler $($$$425).$

$$ December $31$Recorded amortization on the assets. The truck has been driven $9,000$ kilometres since it was purchased.

Required

Record the above transactions. Round all amounts to the nearest dollar. Please leave one empty row between each journal entry.