X Depreciation is usually recorded: 0/1 From the beginning of the accounting year in which an...
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X Depreciation is usually recorded: 0/1 From the beginning of the accounting year in which an asset is purchased. From the actual date of purchase. From the first of the month nearest the actual purchase date. From the end of the month nearest the X actual purchase date. By any of the above methods. arses 12 points Prepare journal entries to record the following transactions of Salem Sales Co. during the current year: (6 marks)4 Purchased a truck for $30,000 with a 5 year useful life and a $5,000 residual value. Salem also paid a 6% provincial sales tax, a $350 annual truck license, $500 to paint the truck with the company's colors and name, and $1,500 for spare parts. All payments were in cash. Mar. 1: Purchased a garage from a neighboring business with a 10%, 4 year, $49,000 note. Ihe seller's book value for the garage was $42.750 and the garage was appraised at $55,575. The estimated useful life is 10 years. Salem also paid a $2,940 real estate commission. May 10: lune 1: Paid $350 cash to replace garage windows broken during a wind storm Purchased used office equipment for $11.000 plus provincial sales tax of $670, terms 2/10, n/30 from Great West Office Supplies As well, Salem paid freight costs of $100 and reconditioning costs of $900, which were paid in Cash, Estimated useful life is 3 years and tesidual value is S500 Aug. 25: Sept 5 Faid for the ofico cquipment purchased on August 25, Purchased stäie eguipmerit far $24,500 jilu S1.4/0 provincial safes tax. As wil, Salena paid S550 forrepairinured rom a accidant during irstallation, S3.200 for pecial base for the mipnient nd 52,600 6isopplies to be for teulat prantive maintenance Estimated uiolul life is 8 years und residual value is $1.200. X Depreciation is usually recorded: 0/1 From the beginning of the accounting year in which an asset is purchased. From the actual date of purchase. From the first of the month nearest the actual purchase date. From the end of the month nearest the X actual purchase date. By any of the above methods. arses 12 points Prepare journal entries to record the following transactions of Salem Sales Co. during the current year: (6 marks)4 Purchased a truck for $30,000 with a 5 year useful life and a $5,000 residual value. Salem also paid a 6% provincial sales tax, a $350 annual truck license, $500 to paint the truck with the company's colors and name, and $1,500 for spare parts. All payments were in cash. Mar. 1: Purchased a garage from a neighboring business with a 10%, 4 year, $49,000 note. Ihe seller's book value for the garage was $42.750 and the garage was appraised at $55,575. The estimated useful life is 10 years. Salem also paid a $2,940 real estate commission. May 10: lune 1: Paid $350 cash to replace garage windows broken during a wind storm Purchased used office equipment for $11.000 plus provincial sales tax of $670, terms 2/10, n/30 from Great West Office Supplies As well, Salem paid freight costs of $100 and reconditioning costs of $900, which were paid in Cash, Estimated useful life is 3 years and tesidual value is S500 Aug. 25: Sept 5 Faid for the ofico cquipment purchased on August 25, Purchased stäie eguipmerit far $24,500 jilu S1.4/0 provincial safes tax. As wil, Salena paid S550 forrepairinured rom a accidant during irstallation, S3.200 for pecial base for the mipnient nd 52,600 6isopplies to be for teulat prantive maintenance Estimated uiolul life is 8 years und residual value is $1.200.
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Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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