The following transactions occurred during 2025. 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 A building that cost $145,200 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,610 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $17,600 is sold for $3,190 cash, f.o.b. purchaser's plant. Freight of $330 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,900 in 2017. The gear is replaced at a cost of $2,200. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $6,050 because of defective workmanship on the original base. The cost of the machinery was $15,620 in 2019. The cost of the base was $3,850, and this amount was charged to the Machinery account in 2019. One of the buildings is repainted at a cost of $7,590. It had not been painted since it was constructed in 2021. Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. 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. List all debit entries before credit entries.)
The following transactions occurred during 2025. 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 A building that cost $145,200 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,610 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $17,600 is sold for $3,190 cash, f.o.b. purchaser's plant. Freight of $330 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,900 in 2017. The gear is replaced at a cost of $2,200. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of $6,050 because of defective workmanship on the original base. The cost of the machinery was $15,620 in 2019. The cost of the base was $3,850, and this amount was charged to the Machinery account in 2019. One of the buildings is repainted at a cost of $7,590. It had not been painted since it was constructed in 2021. Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. 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. List all debit entries before credit entries.)
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...
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Transcribed Image Text:The following transactions occurred during 2025. 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
A building that cost $145,200 in 2008 is torn down to make room for a new building. The wrecking contractor was paid
$5,610 and was permitted to keep all materials salvaged.
Machinery that was purchased in 2018 for $17,600 is sold for $3,190 cash, f.o.b. purchaser's plant. Freight of $330 is
paid on the sale of this machinery.
A gear breaks on a machine that cost $9,900 in 2017. The gear is replaced at a cost of $2,200. The replacement does
not extend the useful life of the machine but does make the machine more efficient.
A special base installed for a machine in 2019 when the machine was purchased has to be replaced at a cost of
$6,050 because of defective workmanship on the original base. The cost of the machinery was $15,620 in 2019. The
cost of the base was $3,850, and this amount was charged to the Machinery account in 2019.
One of the buildings is repainted at a cost of $7,590. It had not been painted since it was constructed in 2021.
Prepare general journal entries for the transactions. (Record journal entries in the order presented in the problem. 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. List all debit entries before credit entries.)
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