The following transactions occurred during 2025. Assume that depreciation of 10% per year is charged on all
Question:
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.
Instructions
Prepare general journal entries for the transactions. (Round to the nearest dollar.)
Jan. 30 Mar. 10 Mar. 20 A building that cost $132,000 in 2008 is torn down to make room for a new building. The wrecking contractor was paid $5,100 and was permitted to keep all materials salvaged. Machinery that was purchased in 2018 for $16,000 is sold for $2,900 cash, f.o.b. purchaser's plant. Freight of $300 is paid on the sale of this machinery. A gear breaks on a machine that cost $9,000 in 2017. The gear is replaced at a cost of $2,000. The replacement does not extend the useful life of the 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 $5,500 because of defective workmanship on the original base. The cost of the machinery was $14,200 in 2019. The cost of the base was $3,500, and this amount was charged to the Machinery account in 2019. June 23 One of the buildings is repainted at a cost of $6,900. It had not been painted since it was constructed in 2021.
Step by Step Answer:
130 Accumulated Depreciation Buildings Loss on Disposal o...View the full answer
Intermediate Accounting
ISBN: 9781119790976
18th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Business questions
-
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...
-
The following transactions occurred during 2014. 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...
-
The following transactions occurred during 2012. Assume that depreciation of 10% per year is charged on all machinery and 3% per year on buildings, on a straight-line basis, with no estimated salvage...
-
1) The mast on the boat is held in place by the rigging, which consists of rope having a diameter of 25 mm and a total length of 50m. Assuming the rope to be cylindrical, determine the drag it exerts...
-
Rewrite the following sentences, making them shorter and more concise while maintaining their main points: a. For good reasons, the secretary may grant extensions of time in 30-day increments for...
-
Create the spreadsheet shown in Figure 14-11. Write formulas to calculate the total depreciation expense and to display the correct values in the following three columns: Age, Depreciation Rate, and...
-
Hemlock Semiconductor Operations, LLC, and SolarWorld Industries Sachsen GmbH, are both companies involved in the manufacture of components for solar power products. Prior to the lawsuit, the two...
-
Presented below is information related to Brokaw Corp. for the year 2012. Instructions(a) Prepare a multiple-step income statement for 2012. Assume that 60,000 shares of common stock are...
-
An upstart phone company has only two potential large customers, Firm A and Firm B. Firm A's monthly demand for phone calls is Q1 = 2,800 200p (with p measured in cents) and Firm 2's is Q2 =5,000...
-
Kelly Clarkson Corporation operates a retail computer store. To improve delivery services to customers, the company purchases four new trucks on April 1, 2025. The terms of acquisition for each truck...
-
Worf Co. both purchases and constructs various equipment it uses in its operations. The following items for two different types of equipment were recorded in random order during the calendar year...
-
On January 1, 2017, when the fair value of its common shares was $80 per share, Hammond Corp. issued $10 million of 8% convertible debentures due in 20 years. The conversion option allowed the holder...
-
Question 2 10 pts Air in a hot air balloon does 37 J of work while expanding, and also absorbs 77.3 of heat from a heat source. What is the change in the balloon air's internal energy?
-
Suppose you want to increase the income component of your return from your real estate equity portfolio but you do not want to sacrifice the appreciation component. What must you look for? If you...
-
Does increasing leverage usually primarily increase the expected income component of the return or the appreciation component? Why?
-
If gross profit is 30%, then what is the markup on cost?For financial reporting of companies using LIFO, the lower of cost or market approach can be applied toFor financial reporting of companies...
-
Stone company produces electronic components. Lately, the company has been facing a drop in sales because of fierce competition and a downturn in the market. Consequently, Stone Corporation's cash...
-
Explain why considering outliers is important when you are conducting a one-mean z-test.
-
Find the cross product a x b and verify that it is orthogonal to both a and b. a = (t, 1, 1/t), b = (t 2 , t 2 , 1)
-
Springsteen Co. had the following activity in its most recent year of operations. (a) Pension expense exceeds amount funded. (b) Redemption of bonds payable. (c) Sale of building at book value. (d)...
-
Data for Fairchild Company are presented in E23-11. Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)
-
Brockman Guitar Company is in the business of manufacturing top-quality, steel-string folk guitars. In recent years the company has experienced working capital problems resulting from the procurement...
-
Lander Company has an opportunity to pursue a capital budgeting project with a five-year time horizon. After careful study, Lander estimated the following costs and revenues for the project: Cost of...
-
A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 339 $ 94 $ 102 Stereos 254 115 104 Amplifiers 320 90...
-
24 Chuck Wagon Grills, Incorporated, makes a single product-a handmade specialty barbecue grill that it sells for $210. Data for last year's operations follow: Units in beginning inventory Units...
Study smarter with the SolutionInn App