The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% 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. A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $ 20,800 is sold for $3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is paid on the sale of this machinery. Mar. 10 Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 May 18 Aspecial base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $ 7,150 because of defective workmanship on the original base. The cost of the machinery was $ 18,460 in 2014. The cost of the base was $ 4,550, and this amount was charged to the Machinery account in 2014. June 23 One of the buildings is repainted at a cost of $ 8,970. It had not been painted since it was constructed in 2016.
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% 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. A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $ 20,800 is sold for $3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is paid on the sale of this machinery. Mar. 10 Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 May 18 Aspecial base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $ 7,150 because of defective workmanship on the original base. The cost of the machinery was $ 18,460 in 2014. The cost of the base was $ 4,550, and this amount was charged to the Machinery account in 2014. June 23 One of the buildings is repainted at a cost of $ 8,970. It had not been painted since it was constructed in 2016.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![## Journal Entry Template
This template is designed for recording financial transactions in the form of journal entries.
### Instructions:
Indent manually. If no entry is required, select "No Entry" for the account titles and enter (0) for the amounts.
### Columns:
1. **Date:** Record the date of the transaction.
2. **Account Titles and Explanation:** Specify the accounts involved and provide a brief explanation of the transaction.
3. **Debit:** Enter the debit amount associated with the transaction.
4. **Credit:** Enter the credit amount associated with the transaction.
### Format:
- **Date**
* 1/30
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
* 3/10
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
* 5/18
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
Use the dropdown to add more entries as needed.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F671de901-83b8-4f97-8655-0b1467b41a0f%2F3e41255a-9cbc-45fc-aab1-0c6fb74182f5%2F1m72rc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:## Journal Entry Template
This template is designed for recording financial transactions in the form of journal entries.
### Instructions:
Indent manually. If no entry is required, select "No Entry" for the account titles and enter (0) for the amounts.
### Columns:
1. **Date:** Record the date of the transaction.
2. **Account Titles and Explanation:** Specify the accounts involved and provide a brief explanation of the transaction.
3. **Debit:** Enter the debit amount associated with the transaction.
4. **Credit:** Enter the credit amount associated with the transaction.
### Format:
- **Date**
* 1/30
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
* 3/10
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
* 5/18
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
- [Account/Explanation] | [Debit Amount] | [Credit Amount]
Use the dropdown to add more entries as needed.
Transcribed Image Text:**Image Transcription for Educational Website**
The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% 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.
**Transactions:**
**Jan. 30**
- A building that cost $171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged.
**Mar. 10**
- Machinery that was purchased in 2013 for $20,800 is sold for $3,770 cash, f.o.b. purchaser’s plant. Freight of $390 is paid on the sale of this machinery.
**Mar. 20**
- A gear breaks on a machine that cost $11,700 in 2012. The gear is replaced at a cost of $2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient.
**May 18**
- A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,150 because of defective workmanship on the original base. The cost of the machinery was $18,460 in 2014. The cost of the base was $4,550, and this amount was charged to the Machinery account in 2014.
**June 23**
- One of the buildings is repainted at a cost of $8,970. It had not been painted since it was constructed in 2016.
**Instructions:**
Prepare general journal entries for the transactions.
*Note: 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 enter 0 for the amounts.*
**Table:**
| Date | Account Titles and Explanation | Debit | Credit |
|---------|--------------------------------|-------|--------|
| 1/30 | | | |
| | | | |
| | | | |
| | | | |
| 3/10 | | | |
*[End
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