ABC Co. has various transactions in 2015. Prepare journal entries to record the transactions listed. Assume that
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ABC Co. has various transactions in 2015. Prepare journal entries to record the transactions listed. Assume that all payments are made with cash.
Please make sure your final answer(s) are accurate to 2 decimal places. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan).
(a) April 12 : The entire manufacturing facility was repainted at a cost of $34,000. This was classified as a repair. (b) August 31 : The company bought a piece of machinery at an auction at a price of $52,500. The machinery had an appraised value of $62,000, so ABC Co. was pleased to get this bargain. The company knew that the machine had to be painted and tuned up. Recoverable sales tax of 11% was paid on the purchase price. (c) September 9 : The machine was delivered to ABC Co.'s manufacturing facility. The freight bill was $2,700. (d) September 23 : Plant maintenance was done, at a cost of $26,600. (e) September 25 : The machine was painted and tuned up, at a cost of $4,500. In the process of the tune-up, it was discovered that the machine needed additional unexpected repairs that were done at a cost of $7,000. |
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