Durham Bike Shop Ltd.'s year end is December 31. Some of the company's transactions are as follows:

March 1 Paid $190,000 cash to purchase the following assets:

Asset

Land Building

Market Value

$88,000 132,000

Est. Useful Life

-

25 years

Est. Residual Value

- $14,000

Durham Bike Shop Ltd. plans to use the straight-line amortization method for the building.

April 15 Purchased a used pickup truck for $10,500 cash. The truck sells for $15,900 when new. The truck is expected to be used for eight years and driven 120,000 km. The estimated salvage value is $3,900. It will be amortized using the units-of-production method.

April 16 bicycles.

June 30

Installed heavy-duty racks costing $1,400 that will enable the truck to carry several

Paid John's garage for an oil change ($35) and the replacement of a muffler ($425).

Dec. 31

was purchased.

Recorded amortization on the assets. The truck was driven 9,000 kilometres since it

Required:

Record the above transactions of Durham Bike Shop Ltd. Round all amounts to the nearest dollar. Explanations are not required.

Answer rating: 100% (QA)

March 1 Land Debit 88000 Building Debit 132000 Cash Credit 190000 April 15 Truck Debit 10500 Accumulated Amortization Debit 0 Cash Credit 10500 June 3... View the full answer