During the 2013 fiscal year, Boyd Company completed the following transactions:} a. On January 10,2013 , paid

Question:

During the 2013 fiscal year, Boyd Company completed the following transactions:}

a. On January 10,2013 , paid $\$ 7,000$ for a complete reconditioning of each of the following machines acquired on January 1, 2009 (total cost, $\$ 14,000$ ). Although the reconditioning of the machines was necessary, it did not extend their useful lives.

i. Machine A: Original cost, $\$ 26,000$; accumulated depreciation (straight line) to December 31 , $2012, \$ 18,400$ (residual value, $\$ 3,000$ ).

ii. Machine B: Original cost, $\$ 32,000$; accumulated depreciation (straight line) to December 31 , $2012, \$ 13,000$ (residual value, $\$ 6,000$ ).

b. On July 1,2013 , purchased a patent for $\$ 19,600$ cash (estimated useful life, seven years).

c. On January 1,2013 , purchased another business for cash $\$ 160,000$, including $\$ 46,000$ for goodwill. The company assumed no liabilities.

d. On September 1, 2013, constructed a storage shed on land leased from A. Kumar. The cost was $\$ 10,800$, paid in cash; the estimated useful life was five years with no residual value. The company uses straight-line depreciation. The lease will expire in three years.

e. Total expenditures during 2013 for ordinary repairs and maintenance were $\$ 6,800$.

f. On July 1, 2013, sold Machine A for $\$ 6,500$ cash.

Required:

1. Indicate the accounts affected, amounts, and direction of the effects (+ for increase, - for decrease, and $\mathrm{NE}$ for no effect) of each transaction on the accounting equation. Use the following structure: image text in transcribed