Prepare Journal Entries to Record the Following Transactions of Salem $\$ 60,000$

Prepare journal entries to record the following transactions of Salem Sales Co. during the current year:


Mar 1 Purchased a truck for $\$ 60,000$ with a 6 year useful life and a $\$ 10,000$ residual value. Salem also paid $7 \%$ provincial sales tax, a $\$ 500$ annual truck license, $\$ 4,000$ to paint the truck and $\$ 2,300$ for spare parts. All payments were in cash.

Mar 12 Purchased a garage from a neighbouring business with a $\$ 60,000$ note payable. The seller's book value for the garage was $\$ 57,000$ and the garage was appraised at $\$ 68,000$ . The estimated useful life is 12 years. Salem also paid a $\$ 4,000$ cash for real estate commission.

June 5 Paid $\$ 750$ to replace garage windows broken during a hail storm.

Aug 23 Purchase used office equipment for $\$ 13,500$ plus provincial sales tax of $\$ 945$ terms $2 / 10$ , n 30 from Great West Office Supplies. As well, Salem paid freight of $\$ 300$ and reconditioning cost of $\$ 850$ on credit. Estimated useful life of 4 years and a residual value of $\$ 1,000$ .

Sept 12 Paid for office equipment purchased on August 23'd.

Oct 5 Purchased store equipment for $\$ 28,000$ plus $\$ 1,960$ in provincial sales tax. As well, Salem paid $\$ 1,750$ for repairs incurred from an accident during installation. $\$ 5,200$ for a special base for the equipment and $\$ 3,700$ of supplies to be used for regular preventive maintenance. Estimated useful life is 9 years and residual value is $\$ 1,300$ .