Question

View History Bookmarks Window Help Homework 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 2018 January 2 Paid $175,00 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $15, eee. July 1 Paid $40,cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $8,000. October 2 Paid $500 cash to paint a small office in the warehouse building. October 13 Paid $150 cash to get the oil changed in the delivery van. December 1 Paid 50,00 cash to UPS to begin operating Fast Delivery business as a franchise using the name The UPS Store. This franchise right expires in five years. December 31 Recorded depreciation and amortization on the delivery van, warehouse building, and franchise right. 2019 June 30 sold the warehouse building for $140, eee cash. (Record the depreciation on the building prior to recording its disposal.) December 31 Recorded depreciation on the delivery van and amortization on the franchise right. Determined that the franchise right was not impaired in value. Required: Prepare the journal entries required on each of the above dates. If no entry is required for a transaction/event, select "Na Journal Entry Required in the first account field. Do not round Intermediate calculations.) View transaction list Journal entry worksheet < Prev 5 of 5 !! Next MacBook Air

Answer 1

Date: Building AB Debit 125.000 Cash AK - Credit 17.00 Deprecahan an Van = 49,919._-2000) July Van Cash Alc- Alc - Debit Credit 40,000 40,00 E 6400 our Repair & maint Al-desit Cash ALL m coedit 500 Soo - 6you x b = 3,200 Dep. on Building 100 TOBO O Rebair nc - Debit 150 Dout to attcttrug Cash Alc - Credit 150 Methode Dep. Rate - Yusful life Det franchise All-Debit 90,000 Cash Alc- Credit goooo Debxuntimo DLL31) Debreciation 1c-Debit 3200 17.SODDX542 Pelivery van Alc-Coedit 3, 200 17,500 Depreciation All-Debt 17.500 Building Alc-credit 17.500 Amortisation of franchise mot 99.002. Amootisation Alc-Debit 6000 1500 franchise All credit hoogsool = 18,000x1500 | Deportation on Building 30 Timell Depreciation Alc-Debit 7,875 Cilton 19 to 20. June 119 Building ALC -dit 7,825_ (12100 - 11.SODXS x 246 Cash Ak - Debit 140,000 _ 0 12. Los on sale of building Debit 9625 = 7,875 A Building Al - coedit 149.625 Bok value = 175000-17500 - Depreciation All-Debit 3 6400 Van All - Credit 6.400 Armortisation Ak-Debit 18000 I franchise All - Credit 18000 2300 = 149625