Prepare Journal Entries to Record the Following Transactions of Salem $\quad$

Essay

Prepare journal entries to record the following transactions of Salem Sales Co.during the current year:
Mar 1 $\quad$ Purchased a truck for $\$ 60,000$ with a 6 year useful life and a $\$ 10,000$ residual value. Salem also paid
$\quad$$\quad$$\quad$ $7 \%$ provincial sales tax, a $\$ 500$ annual truck license, $\$ 4,000$ to paint the truck and $\$ 2,300$ for spare
$\quad$$\quad$$\quad$ parts. All payments were in cash.
Mar 12 $\quad$ Purchased a garage from a neighbouring business with a $\$ 60,000$ note payable. The seller's book value
$\quad$$\quad$$\quad$ for the garage was $\$ 57,000$ and the garage was appraised at $\$ 68,000$ . The estimated useful life is 12 years. Salem also
$\quad$$\quad$$\quad$ paid a $\$ 4,000$ cash for real estate commission.
June 5 $\quad$ Paid $\$ 750$ to replace garage windows broken during a hail storm.
Aug 23 $\quad$ Purchase used office equipment for $\$ 13,500$ plus provincial sales tax of $\$ 945$ terms $2 / 10, \mathrm{n} 30$ from
$\quad$$\quad$$\quad$ Great West Office Supplies. As well, Salem paid freight of $\$ 300$ and reconditioning cost of $\$ 850$ on
$\quad$$\quad$$\quad$ credit. Estimated useful life of 4 years and a residual value of $\$ 1,000$ .
Sept 12 $\quad$ Paid for office equipment purchased on August 23'd.
Oct 5 $\quad$ Purchased store equipment for $\$ 28,000$ plus $\$ 1,960$ in provincial sales tax. As well, Salem paid $\$ 1,750$
$\quad$$\quad$$\quad$ for repairs incurred from an accident during installation. $\$ 5,200$ for a special base for the equipment
$\quad$$\quad$$\quad$ and $\$ 3,700$ of supplies to be used for regular preventive maintenance. Estimated useful life is 9 years
$\quad$$\quad$$\quad$ and residual value is $\$ 1,300$ .