The following transactions occurred during 2017. Assume that depreciation of 10% per year is charged on all

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The following transactions occurred during 2017. 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 residual value. Assume also that depreciation is charged for a full year on all fixed assets that are acquired during the year, and that no depreciation is charged on fixed assets that are disposed of during the year.
Jan. 30 A building that cost $132,000 in 2000 was torn down to make room for a new building structure. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged.
Mar. 10 A new part costing $2,900 was purchased and added to a machine that was purchased in 2015 for $16,000. The new part replaces an original machine part, and does not extend the machine's useful life. The old part's cost was not separable from the original machine's cost.
Mar. 20 gear broke on a machine that cost $9,000 in 2012, and the gear was replaced at a cost of $185. The replacement does not extend the machine's useful life.
May 18 A special base that was installed for a machine in 2011 when the machine was purchased had to be replaced at a cost of $5,500 because of defective workmanship on the original base. The cost of the machinery was $14,200 in 2011. The cost of the base was $3,500, and this amount was charged to the Machinery account in 2011.
June 23 One of the buildings was repainted at a cost of $6,900. It had not been painted since it was constructed in 2013.
Instructions
(a) Prepare general journal entries for the transactions. (Round to nearest dollar.)
(b) Assume that the gear replacement purchased on March 20 extends the machine's useful life. How would your journal entry change?
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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-1119048534

11th Canadian edition Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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