Homework Help is Here – Start Your Trial Now!
Business
Accounting
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. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the transactions. (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 o for the amounts.) Account Titles and Explanation A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,590 because of defective workmanship on the original base. The cost of the machinery was $19,596 in 2014. The cost of the base was $4,830, and this amount was charged to the Machinery account in 2014. One of the buildings is repainted at a cost of $9,522. It had not been painted since it was constructed in 2016. Debit Credit

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. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the transactions. (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 o for the amounts.) Account Titles and Explanation A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,590 because of defective workmanship on the original base. The cost of the machinery was $19,596 in 2014. The cost of the base was $4,830, and this amount was charged to the Machinery account in 2014. One of the buildings is repainted at a cost of $9,522. It had not been painted since it was constructed in 2016. Debit Credit

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 11E: On May 10, 2019, Horan Company purchased equipment for 25,000. The equipment has an estimated...
See similar textbooks
icon
Related questions
Topic Video
Question
Date 1/30 3/10 5/18 Account Titles and Explanation Debit Credit
Transcribed Image Text:Date 1/30 3/10 5/18 Account Titles and Explanation Debit Credit
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. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the transactions. (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 o for the amounts.) Account Titles and Explanation A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,590 because of defective workmanship on the original base. The cost of the machinery was $19,596 in 2014. The cost of the base was $4,830, and this amount was charged to the Machinery account in 2014. One of the buildings is repainted at a cost of $9,522. It had not been painted since it was constructed in 2016. Debit Credit 101
Transcribed Image Text: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. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 Date A building that cost $182,160 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,038 and was permitted to keep all materials salvaged. 1/30 Machinery that was purchased in 2013 for $22,080 is sold for $4,002 cash, f.o.b. purchaser's plant. Freight of $414 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,420 in 2012. The gear is replaced at a cost of $2,760. The replacement does not extend the useful life of the machine but does make the machine more efficient. Prepare general journal entries for the transactions. (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 o for the amounts.) Account Titles and Explanation A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,590 because of defective workmanship on the original base. The cost of the machinery was $19,596 in 2014. The cost of the base was $4,830, and this amount was charged to the Machinery account in 2014. One of the buildings is repainted at a cost of $9,522. It had not been painted since it was constructed in 2016. Debit Credit 101
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS