During the 2013 fiscal year, Zhou Corporation completed the following transactions: a. On January 1,2013 , paid

Question:

During the 2013 fiscal year, Zhou Corporation completed the following transactions:

a. On January 1,2013 , paid $\$ 8,000$ for a complete reconditioning of each of the following machines acquired on January 1,2010 (total cost, $\$ 16,000$ ). Although the reconditioning of the machines was necessary, it did not extend their useful lives.

i. Machine A: Original cost, $\$ 21,500$; accumulated depreciation (straight-line) to December 31 , $2012, \$ 13,500$ (residual value, $\$ 3,500$ ).

ii. Machine B: Original cost, $\$ 18,000$; accumulated depreciation (straight-line) to December 31 , $2012, \$ 10,200$ (residual value, $\$ 1,000$ ).

b. On July 1,2013 , purchased a licence for $\$ 6,300$ cash (estimated useful life, three years).

c. On July 1, 2013, purchased another business for cash $\$ 120,000$, including $\$ 29,000$ for goodwill. The company assumed $\$ 24,000$ of liabilities from the other business. The company does not amortize goodwill.

d. On July 1, 2013, sold Machine A for $\$ 11,000$ cash.

e. On October 1, 2013, repaved the parking lot of the building leased from J. Caldwell. The cost was $\$ 7,800$, paid in cash; the estimated useful life was five years with no residual value. The company uses straight-line depreciation. The lease will expire on December 31, 2016.

f. Total expenditures during 2013 for ordinary repairs and maintenance were $\$ 6,700$.

Required:
1. For each of these transactions, indicate the accounts affccted, amounts, and direction of the effects ( + for increase and - for decrease) on the accounting equation. Use the following structure: