Required:

1. Record the above transactions of Pride Parts Co in a general journal. Round all amounts to the nearest dollar.

2. Show the balance sheet presentation of the assets at December 31, 2014.

Pride parts Co. has a fiscal year ending December 31. The company completed the following selected transactions:

2013

July 2 - Paid $640,000 plus $20,000 in legal fees (Pertaining to all assets purchased) to purchase the following assets from a competitor that was going out of business:

Assets Appraised Value Estimated Useful Life Estimated Residual Value

Land $360,000

Buildings $240,000 8 years $20,000

Equipment $120,000 3 Years $2000

Pride Parts Co. plans to use the straight-line amortization method for the building and for the equipment.

Sept 2 Purchase a delivery truck with a list price of $39,000 for $36,000 cash. The truck is expected to be used for three years and driven a total of 280,000 kilometers; it is then expected to be sold for $4000. It will be amortization using the UOP method.

Sept 3 Paid $3000 to paint the truck with the companys colors and logo.

Dec 31 Recorded amortization on the assets. The truck had been driven 20,000 kilometers since it was purchased.

2014

May 4 Pride Parts Co. paid $11,000 to Gill Service Ltd. for work done on the equipment. The job consisted of annual maintenance ($1200) and the addition of automatic controls ($9800) that allow the equipment to remain useful for the next five years and increase its expected residual value by $1000.

Nov 25 Sold the truck for $23,600. The truck had an odometer reading of 140,000 kilometers.

Dec 31 Recorded amortization on the assets