Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 11, Problem 2EA
Jada Company had the following transactions during the year:
• Purchased a machine for $500,000 using a long-term note to finance it
• Paid $500 for ordinary repair
• Purchased a patent for $45,000 cash
• Paid $200,000 cash for addition to an existing building
• Paid $60,000 for monthly salaries
• Paid $250 for routine maintenance on equipment
• Paid $10,000 for extraordinary repairs
If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
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Jada Company had the following transactions during the
year:
• Purchased a machine for $500,000 using a long-term
note to finance it
• Paid $1,000 for ordinary repair
• Purchased a patent for $42,000 cash
• Paid $210,000 cash for addition to an existing building
• Paid $55,000 for monthly salaries
• Paid $300 for routine maintenance on equipment
• Paid $10,000 for extraordinary repairs
If all transactions were recorded properly, what amount did
Jada capitalize for the year, and what amount did Jada
expense for the year?
Capitalized
$4
Expensed
Jada Company had the following transactions during the year:• Purchased a machine for $500,000 using a long-term note to finance it• Paid $500 for ordinary repair• Purchased a patent for $45,000 cash• Paid $200,000 cash for addition to an existing building• Paid $60,000 for monthly salaries• Paid $250 for routine maintenance on equipment• Paid $10,000 for major repairs• Depreciation expense recorded for the year is $25,000If all transactions were recorded properly, what is the amount of increase to the Property, Plant, andEquipment section of Jada’s balance sheet resulting from this year’s transactions? What amount did Jadareport on the income statement for expenses for the year?
Jada Company had the following transactions during the year:
Purchased a machine for $440,000 using a long-term note to finance it.
Paid $460 for ordinary repair.
Purchased a patent for $48,000 cash.
Paid $160,000 cash for addition to an existing building.
Paid $52,000 for monthly salaries.
Paid $240 for routine maintenance on equipment.
Paid $10,000 for major repairs.
Depreciation expense recorded for the year is $20,000.
A) If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions?
B) What amount did Jada report on the income statement for expenses for the year?
Chapter 11 Solutions
Principles of Accounting Volume 1
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