Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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. 2018 January 2 Paid $174,888 cash to purchase a snall warehouse building near the airport. The building has an estimated July 1 Paid $39,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $7,800. October 2 Paid $400 cash to paint a small office in the warehouse building. October 13 Paid $200 cash to get the oil changed in the delivery van. December 1 Paid $91,588 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 Recorded depreciation and anortization on the delivery van, warehouse building, and franchise right. 2019 June 38 Sold the warehouse building for $139,000 cash. (Record the depreciation on the buttding prior to recording its disposal.) December 31 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.) View transaction list Journal entry worksheet 1 4 5 6 7 8 9 > Record the purchase of a warehouse building for $174,000 cash
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started