Pad 826 PM 33 value 3000 points The following transactions

Pad 8:26 PM @ * 33%.- value: 30.00 points 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. Paid $171,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,700. Paid $36,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $7,200. Paid $700 cash to paint a small office in the warehouse building. Paid $150 cash to get the oil changed in the delivery van. Paid $96,000 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. January 2, 2015 July 1, 2015 October 2, 2015 October 13, 2015 December 1, 2015 December 31, 2015 Recorded depreciation and amortization on the delivery van, warehouse building. June 30, 2016 Sold the warehouse building for $137,000 cash. (Record the depreciation on the December 31, 2016 Recorded depreciation on the delivery van and amortization on the franchise right and franchise right building prior to recording its disposal.) 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 \"No Journal Entry Required\" in the first account field. Do not round intermediate calculations.) Journal entry worksheet 6

Solution

Date General Journal Debit Credit January 02, 2015 Warehouse 171000 Cash 171000 July 01,2015 Delivery Van 36000 Cash 36000 October 02,2015 Paint Expense 700 Cash 700 October 13,2015 Oil Expense 150 Cash 150 December 01,2015 Franchise Rights 96000 Cash 96000 December 31,2015 Depreciation 19980 Warehouse 17100 Delivery Van 2880 December 31,2015 Amortisation 1600 Franchise Rights 1600 June 30,2016 Depreciation 7695 Warehouse 7695 June 30,2016 Cash 137000 Loss on sale 9205 Warehouse 146205 December 31,2016 Depreciation 5760 Delivery Van 5760 Amortisation 19200 Franchise Rights 19200