A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan, 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,040 because of defective workmanship on the original base. The cost of the machinery was $18,176 in 2014. The cost of the base was $4,480, and this amount was charged to the Machinery account in 2014. May 18 June 23 One of the buildings is repainted at a cost of $8,832. It had not been painted since it was constructed in 2016.

A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan, 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,040 because of defective workmanship on the original base. The cost of the machinery was $18,176 in 2014. The cost of the base was $4,480, and this amount was charged to the Machinery account in 2014. May 18 June 23 One of the buildings is repainted at a cost of $8,832. It had not been painted since it was constructed in 2016.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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