ABC co must replace a roof on their factory. The roof replacement cost $50,000 plus GST....
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ABC co must replace a roof on their factory. The roof replacement cost $50,000 plus GST. There was also a $3,000 roof repair on an outbuilding, plus GST. The factory and the outbuilding were built 20 years ago and these structures are believed to have a 40 year life. Required: If the roof was separately identified component of the building and was built for $75,000 and was depreciated using the straight line method over 25 years, what would the journal entry be to record the roof replacement? If the roof was not separately identified, therefore the original cost of the roof is unknown, what would be the journal entry to record the replacement? Assume construction costs in the area have doubled since the original roof was installed. Scenario 8 ABC Co schedules a major overhaul on their jet every 2,000 flight hours. The jet is expected to last 20,000 flight hours. The company expects each overhaul to cost $100,000. The first overhaul actually costs $105,000 and the second overhaul costs $110,000 but had to be done 1,750 hours after the second overhaul. Required What is the journal entry to record the first overhaul on the jet. Assume the overhaul is done at 2,000 hours What is the journal entry to record the second overhaul on the jet. ABC co must replace a roof on their factory. The roof replacement cost $50,000 plus GST. There was also a $3,000 roof repair on an outbuilding, plus GST. The factory and the outbuilding were built 20 years ago and these structures are believed to have a 40 year life. Required: If the roof was separately identified component of the building and was built for $75,000 and was depreciated using the straight line method over 25 years, what would the journal entry be to record the roof replacement? If the roof was not separately identified, therefore the original cost of the roof is unknown, what would be the journal entry to record the replacement? Assume construction costs in the area have doubled since the original roof was installed. Scenario 8 ABC Co schedules a major overhaul on their jet every 2,000 flight hours. The jet is expected to last 20,000 flight hours. The company expects each overhaul to cost $100,000. The first overhaul actually costs $105,000 and the second overhaul costs $110,000 but had to be done 1,750 hours after the second overhaul. Required What is the journal entry to record the first overhaul on the jet. Assume the overhaul is done at 2,000 hours What is the journal entry to record the second overhaul on the jet.
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Related Book For
College Accounting A Practical Approach
ISBN: 978-0132564441
11th Canadian Edition
Authors: Jeffrey Slater, Brian Zwicker
Posted Date:
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