Johnson, Incorporated had the following transactions during the year: Purchased a building for $5,000,000 using a
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Johnson, Incorporated had the following transactions during the year:
• Purchased a building for $5,000,000 using a mortgage for financing
• Paid $2,000 for ordinary repair on a piece of equipment
• Sold product on account to customers for $1,500,600
• Purchased a copyright for $5,000 cash
• Paid $20,000 cash to add a storage shed in the corner of an existing building
• Paid $360,000 in monthly salaries
• Paid $25,000 for routine maintenance on equipment
• Paid $110,000 for major repairs If all transactions were recorded properly, what amount did Johnson capitalize for the year, and what amount did Johnson expense for the year?
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Related Book For
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
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