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

\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

A New Machine Is Expected to Produce 60,000 Units of Product

Essay