The following transactions occurred during 2020. 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. A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $ 20,800 is sold for $3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is paid on the sale of this machinery. Mar. 10 Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 May 18 Aspecial base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $ 7,150 because of defective workmanship on the original base. The cost of the machinery was $ 18,460 in 2014. The cost of the base was $ 4,550, and this amount was charged to the Machinery account in 2014. June 23 One of the buildings is repainted at a cost of $ 8,970. It had not been painted since it was constructed in 2016.
The following transactions occurred during 2020. 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. A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,630 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $ 20,800 is sold for $3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is paid on the sale of this machinery. Mar. 10 Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does not extend the useful life of the machine but does make the machine more efficient. Mar. 20 May 18 Aspecial base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $ 7,150 because of defective workmanship on the original base. The cost of the machinery was $ 18,460 in 2014. The cost of the base was $ 4,550, and this amount was charged to the Machinery account in 2014. June 23 One of the buildings is repainted at a cost of $ 8,970. It had not been painted since it was constructed in 2016.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 13P
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Transcribed Image Text:indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Debit
Credit
Date
Account Titles and Explanation
1/30
3/10
5/18
Transcribed Image Text:The following transactions occurred during 2020. 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.
A building that cost $ 171,600 in 2003 is torn down to make room for a new building. The wrecking contractor was paid
$6,630 and was permitted to keep all materials salvaged.
Jan. 30
Machinery that was purchased in 2013 for $ 20,800 is sold for $ 3,770 cash, f.o.b. purchaser's plant. Freight of $ 390 is
paid on the sale of this machinery.
Mar. 10
Mar. 20
Agear breaks on a machine that cost $ 11,700 in 2012. The gear is replaced at a cost of $ 2,600. The replacement does
not extend the useful life of the machine but does make the machine more efficient.
Aspecial base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $
7,150 because of defective workmanship on the original base. The cost of the machinery was $ 18,460 in 2014. The
cost of the base was $4,550, and this amount was charged to the Machinery account in 2014.
May 18
June 23
One of the buildings is repainted at a cost of $ 8,970. It had not been painted since it was constructed in 2016.
Prepare general journal entries for the transactions. (Credit account titles are automatically indented when amount is entered. Do not
indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date
Account Titles and Explanation
Debit
Credit
1/30
3/10
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