3. Greatyear Textiles operates a small factory building. Recently, the company paid some amounts related to...

 

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3. Greatyear Textiles operates a small factory building. Recently, the company paid some amounts related to its property, plant, and equipment: 6 marks a) Greatyear replaced its factory floor. The replacement flooring is constructed from a more durable material that is expected to last longer than the existing flooring. The original floor had been capitalited as part of the factory building when it was previously purchased and was not considered a separate component. Greatyear depreciates the building on a straight-line basis. Greatyear estimated that the original cost of the floor would have been 20% cheaper than the new replacement, due to inflation. Amount paid to replace factory floor Useful life of building at time of purchase (in years) Number of years for which building is already depreciated 42,921 27 10 b) Greatyear paid a local company to perform some work on one of the company's forklifts. The itemized invoice for the work showed the following charges: Re-aligning the wheels Oil change 783 192 Replacing one of the belts Touching up some paint 174 156 c) Greatyear paid a local company cash for a computerized control panel. The control panel was to be added to one of Greatyear's existing manufacturing machines, which was currently operated manually. The control panel would control the machine by computer, making it more efficient. Cash paid for the computerized control panel 14,591 Original cost of machine $ 324,236 REQUIRED: Prepare entries to record the above transactions for the year. Assume cash was paid for all expenditures. 3. Greatyear Textiles operates a small factory building. Recently, the company paid some amounts related to its property, plant, and equipment: 6 marks a) Greatyear replaced its factory floor. The replacement flooring is constructed from a more durable material that is expected to last longer than the existing flooring. The original floor had been capitalited as part of the factory building when it was previously purchased and was not considered a separate component. Greatyear depreciates the building on a straight-line basis. Greatyear estimated that the original cost of the floor would have been 20% cheaper than the new replacement, due to inflation. Amount paid to replace factory floor Useful life of building at time of purchase (in years) Number of years for which building is already depreciated 42,921 27 10 b) Greatyear paid a local company to perform some work on one of the company's forklifts. The itemized invoice for the work showed the following charges: Re-aligning the wheels Oil change 783 192 Replacing one of the belts Touching up some paint 174 156 c) Greatyear paid a local company cash for a computerized control panel. The control panel was to be added to one of Greatyear's existing manufacturing machines, which was currently operated manually. The control panel would control the machine by computer, making it more efficient. Cash paid for the computerized control panel 14,591 Original cost of machine $ 324,236 REQUIRED: Prepare entries to record the above transactions for the year. Assume cash was paid for all expenditures.

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a Date Pariculars Debit Credit Factory floor Building 42921 Cash 42921 To r... View the full answer