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. January 2, 2020 Paid $171,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,700. July 1, 2020 Paid $36,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $7,200. October 2, 2020 Paid $700 cash to paint a small office in the warehouse building. October 13, 2020 Paid $150 cash to get the oil changed in the delivery van. December 1, 2020 Paid $96,000 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, 2020 Recorded depreciation and amortization on the delivery van, warehouse building, and franchise right. June 30, 2021 Sold the warehouse building for $137,000 cash. (Record the depreciation on the building prior to recording its disposal.) December 31, 2021 Recorded depreciation on the delivery van and amortization on the franchise right. Determined that the franchise right was not impaired in value. Journal entry worksheet Record the purchase of a delivery van for $36,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date July 01, 2020 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 3 4 5 6 7 8 9 > Record the payment for painting a small office in the warehouse building for $ 700. Note: Enter debits before credits. General Journal Debit Credit Date October 02, 2020 Record entry Clear entry View general Journal Journal entry worksheet Record the franchise rights purchased for $96,000 to allow for the operation of a fast delivery business. Note: Enter debits before credits. General Journal Debit Credit Date December 01, 2020 Record entry Clear entry View general Journal Journal entry worksheet 1 2 3 4 5 6 7 8 9 > Record the depreciation and amortization expenses on the delivery van, warehouse building, and franchise rights for the year 2020. Note: Enter debits before credits. General Journal Debit Credit Date December 31, 2020 Record entry Clear entry View general Journal Journal entry worksheet Record the sale of the warehouse building for $137,000 cash. Note: Enter debits before credits. General Journal Debit Credit Date June 30, 2021 Record entry Clear entry View general Journal Journal entry worksheet Record the depreciation and amortization expenses on the delivery van and franchise rights for the year 2021. Note: Enter debits before credits. Date General Journal Debit Credit December 31, 2021 Record entry Clear entry View general Journal
