The following selected events occurred for Orwell Company during the first quarter of 2016: Jan. 11 A motor breaks on a machine and is replaced for $2,400. This replacement was expected when the machine was purchased. Feb. 15 A machine breaks down unexpectedly and requires repairs of $700. Mar. 10 An accident damages some equipment. Repairs cost $2,000. 19 A motor breaks on a machine and is replaced for $900. The new motor is of an improved design that increases the capacity of the machine. 27 Office layout is rearranged at a cost of $700. At the same time, the walls are repainted for $500. Required: 1. Prepare journal entries for the preceding transactions. 2. Would any of your answers change if the company used IFRS? If so, how?
The following selected events occurred for Orwell Company during the first quarter of 2016: Jan. 11 A motor breaks on a machine and is replaced for $2,400. This replacement was expected when the machine was purchased. Feb. 15 A machine breaks down unexpectedly and requires repairs of $700. Mar. 10 An accident damages some equipment. Repairs cost $2,000. 19 A motor breaks on a machine and is replaced for $900. The new motor is of an improved design that increases the capacity of the machine. 27 Office layout is rearranged at a cost of $700. At the same time, the walls are repainted for $500. Required: 1. Prepare journal entries for the preceding transactions. 2. Would any of your answers change if the company used IFRS? If so, how?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following selected events occurred for Orwell Company during the first quarter of 2016:
| Jan. | 11 | A motor breaks on a machine and is replaced for $2,400. This replacement was expected when the machine was purchased. |
| Feb. | 15 | A machine breaks down unexpectedly and requires repairs of $700. |
| Mar. | 10 | An accident damages some equipment. Repairs cost $2,000. |
| 19 | A motor breaks on a machine and is replaced for $900. The new motor is of an improved design that increases the capacity of the machine. | |
| 27 | Office layout is rearranged at a cost of $700. At the same time, the walls are repainted for $500. |
| Required: | |
| 1. | Prepare |
| 2. | Would any of your answers change if the company used IFRS? If so, how? |
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