Paid $180,000 cash to purchase a small warehouse building near the airport. The

Question

Paid $180,000 cash to purchase a small warehouse building near the airport. The building has an estimated life of 20 years and a residual value of $3,500 Paid $48,000 cash to purchase a delivery van. The van has an estimated useful life of five years and a residual value of $9,600 Paid $500 cash to paint a small office in the warehouse building Paid $250 cash to get the oil changed in the delivery van Paid $82,500 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 Recorded depreciation and amortization on the delivery van, warehouse building and franchise right. Sold the warehouse building for $144,000 cash. (Record the depreciation on the building prior to recording its disposal.) Recorded depreciation on the delivery van and amortization on the franchise right. Determined that the franchise right was not impaired in value January 2, 2015 July 1, 2015 October 2, 2015 October 13, 2015 December 1, 2015 December 31, 2015 June 30, 2016 December 31, 2016 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.) View transaction list Journal entry worksheet 2 4 5 6 8 Record the payment for painting a small office in the warehouse building for $500 Note: Enter debits before credits Date General Journal Debit Credit October 02, 2015 Other Expenses 500 500

Explanation / Answer

Journal Entries Date General Journal Debit Credit In ($) 2015 January, 2 Warehouse Building A/c          180,000 To Cash a/c           180,000 (Purchased a warehouse building for Cash) July,1 Delivery Van A/c            48,000 To Cash a/c             48,000 (Purchased a Delivery Van for Cash) October, 2 Other Expenses A/c                 500 To Cash a/c                  500 (Paid Cash for painting office building) October, 13 Repairs and Maintenance Expense A/c                 250 To Cash a/c                  250 December, 1 Amortization Expenses A/c            82,500 To Operating Expenses a/c             82,500 December, 31 Depreciation on Delivery Van A/c              7,680 To Delivery Van a/c               7,680 ($48,000-9,600)/5 December, 31 Depreciation on Warehouse Building A/c              8,825 To Warehouse Building a/c               8,825 ($180,000-3,500)/20 December, 31 Amortization of Franchise Right A/c            16,500 To Franchise Right a/c             16,500 $ 82,500/5 2016 June, 30 Cash A/c          144,000 To Warehouse Building a/c           144,000 December, 31 Depreciation on Delivery Van A/c              7,680 To Delivery Van a/c               7,680 ($48,000-9,600)/5 December, 31 Amortization of Franchise Right A/c            16,500 To Franchise Right a/c             16,500

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