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Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $251,000 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $18,000 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $19,700 is sold for $1,500 cash, f.o.b. purchaser's plant. Freight of $1,100 is paid on this machinery. A gear breaks on a machine that cost $12,300 in 2017. The gear is replaced at a cost of $710. The replacement does not extend the useful life of the machine. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $6,100 because of defective workmanship on the original base. The cost of the machinery was $15,100 in 2019. The cost of the base was $3,200, and this amount was charged to the Machinery account in 2019. One of the buildings is repainted at a cost of $11,800. It had not been painted since it was constructed in 2021. Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. Credit account titles are

Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $251,000 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $18,000 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $19,700 is sold for $1,500 cash, f.o.b. purchaser's plant. Freight of $1,100 is paid on this machinery. A gear breaks on a machine that cost $12,300 in 2017. The gear is replaced at a cost of $710. The replacement does not extend the useful life of the machine. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $6,100 because of defective workmanship on the original base. The cost of the machinery was $15,100 in 2019. The cost of the base was $3,200, and this amount was charged to the Machinery account in 2019. One of the buildings is repainted at a cost of $11,800. It had not been painted since it was constructed in 2021. Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. Credit account titles are

FINANCIAL ACCOUNTING
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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The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 3% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $251,000 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $18,000 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $19,700 is sold for $1,500 cash, f.o.b. purchaser's plant. Freight of $1,100 is paid on this machinery. A gear breaks on a machine that cost $12,300 in 2017. The gear is replaced at a cost of $710. The replacement does not extend the useful life of the machine. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $6,100 because of defective workmanship on the original base. The cost of the machinery was $15,100 in 2019. The cost of the base was $3,200, and this amount was charged to the Machinery account in 2019. One of the buildings is repainted at a cost of $11,800. It had not been painted since it was constructed in 2021. Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
Transcribed Image Text:The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all machinery and 3% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 A building that cost $251,000 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $18,000 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $19,700 is sold for $1,500 cash, f.o.b. purchaser's plant. Freight of $1,100 is paid on this machinery. A gear breaks on a machine that cost $12,300 in 2017. The gear is replaced at a cost of $710. The replacement does not extend the useful life of the machine. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $6,100 because of defective workmanship on the original base. The cost of the machinery was $15,100 in 2019. The cost of the base was $3,200, and this amount was charged to the Machinery account in 2019. One of the buildings is repainted at a cost of $11,800. It had not been painted since it was constructed in 2021. Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and
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