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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.

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.

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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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 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. Mar. 10 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. Mar. 20 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 ofthe machine but does make the machine more efficient. May 18 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. June 23 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 entriesin the order presented in the problem. Credit accounttitles are automatically indented when amountis entered. Do notindent manually. If no entry isrequired,select"No Entry" for the accounttitles and enter O for the amounts. List all debit entries before credit entries.)
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 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. Mar. 10 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. Mar. 20 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 ofthe machine but does make the machine more efficient. May 18 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. June 23 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 entriesin the order presented in the problem. Credit accounttitles are automatically indented when amountis entered. Do notindent manually. If no entry isrequired,select"No Entry" for the accounttitles and enter O for the amounts. List all debit entries before credit entries.)
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