Question
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. January 2, 2020 Paid $185,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,300. July 1, 2020 Paid $53,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $10,600. October 2, 2020 Paid $300 cash to paint a small office in the warehouse building. October 13, 2020 Paid $150 cash to get the oil changed in
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.)
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