Journalize each of the following transactions: (use correct journal format - no dates) (a) A wing costing $2,345,000 was added to the building. A new mortgage was issued for the (b) cost. Equipment was upgraded to increase its capacity to produce widgets. The upgrade cost of $21,500 was paid in cash. A major overhaul costing $12,000 on a machine increased the useful life by 4 years. The company issued a note for payment...

Journalize each of the following transactions: (use correct journal format - no dates) (a) A wing costing $2,345,000 was added to the building. A new mortgage was issued for the (b) cost. Equipment was upgraded to increase its capacity to produce widgets. The upgrade cost of $21,500 was paid in cash. A major overhaul costing $12,000 on a machine increased the useful life by 4 years. The company issued a note for payment...

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 2EB: Johnson, Incorporated had the following transactions during the year: Purchased a building for...

See similar textbooks

Similar questions

New energy-efficient windows were installed for a total cost of $375,000. The company received a government grant, in the form of cashback for 15% of the total cost. The windows have a 15-year useful life and are depreciated on a straight-line basis. Prepare the journal entries required in the year of purchase using the: 1) Net method 2) Deferral method
Several years ago, Health Services acquired a helicopter for use in emergency situations. Health Services incurred the following expenditures related to the helicopter delivery operations in the current year:1. Overhauled the engine at a cost of $7,500. Health Services estimated the work would increase the service life for an additional five years.2. Cleaned, repacked, and sealed the bearings on the helicopter at a cost of $800. This repair is performed annually.3. Added new emergency health equipment to the helicopter for $25,000.4. Modified the helicopter to reduce cabin noise by installing new sound barrier technology at a cost of $15,000.5. Paid insurance on the helicopter for the current year, which increased 15% over the prior year to $9,000.6. Performed annual maintenance and repairs at a cost of $39,000.Required:Indicate whether Health Services should capitalize or expense each of these expenditures. How could Health Services use expenditures like these to increase reported…
Assume that in January 20X6, a Hotcake House restaurant purchased a building, paying $57,000 cash and signing a $108,000 note payable. The restaurant paid another $60,000 to remodel the bui and fixtures cost $54,000, and dishes and supplies-a current asset-were obtained for $10,200. Hotcake House is depreciating the building over 20 years by the straight-line method, with estimate value of $55,000 The fumiture and fixtures will be replaced at the end of five years and are being depreciated by the double-declining-balance method, with zero residual value. At the end of the first restaurant still has dishes and supplies worth $1,900. Requirement 1. Show what the restaurant will report for supplies, PPE, and cash flows at the end of the first year on its. • Income Statement • Balance Sheet • Statement of Cash Flows (investing only) Note The purchase of dishes and supplies is an operating cash flow because supplies are a current asset. Requirement 1. Show what the restaurant will report…
Houston’s Shredding Service has just completed a minor repair on a shredding machine. The repair cost was $1,010, and the book value prior to the repair was $4,750. In addition, the company spent $6,000 to replace the roof on a building. The new roof extended the life of the building by five years. Prior to the roof replacement, the general ledger reflected the Building account at $89,300 and related Accumulated Depreciation account at $44,300. After the work was completed, what book value should Houston’s report on the balance sheet for the shredding machine and the building? Book Value Shreddding Machine Building
Meman
Provide the Correct answer of what is the right answer
Jada Company had the following transactions during the year: • Purchased a machine for $500,000 using a long-term note to finance it • Paid $1,000 for ordinary repair • Purchased a patent for $42,000 cash • Paid $210,000 cash for addition to an existing building • Paid $55,000 for monthly salaries • Paid $300 for routine maintenance on equipment • Paid $10,000 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 $4 Expensed
.
.
.
Match each item to a bank statement adjustment, a company books adjustment, or either.
Please answer in text form without image