Jada Company had the following transactions during the year: • Purchased a machine for $500,000 using a long-term note to finance it • Paid $500 for ordinary repair • Purchased a patent for $44,000 cash • Paid $170,000 cash for addition to an existing building • Paid $59,000 for monthly salaries • Paid $150 for routine maintenance on equipment • Paid $14,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year? Capitalized $fill in the blank 1 Expensed $fill in the blank 2

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jada Company had the following transactions during the year:

• Purchased a machine for $500,000 using a long-term note to finance it

• Paid $500 for ordinary repair

• Purchased a patent for $44,000 cash

• Paid $170,000 cash for addition to an existing building

• Paid $59,000 for monthly salaries

• Paid $150 for routine maintenance on equipment

• Paid $14,000 for extraordinary repairs

If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?

Capitalized $fill in the blank 1
Expensed $fill in the blank 2
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