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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.

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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## 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:## 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.
**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
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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