Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 pints 8 04:18:53 eBook Print References GTT Company had the following transactions In 20x4: 0n 1 January 20x4, a new machine was purchased at

image text in transcribed
5 pints 8 04:18:53 eBook Print References GTT Company had the following transactions In 20x4: 0n 1 January 20x4, a new machine was purchased at a list price of 5822.500. The company did not take advantage of a 2% cash discount available upon full payment of the invoice within 30 days. Shipping cost paid by the vendor was $100. installation cost was $300. including $100 that represented 10% of the monthly salary of the factory superintendent (installation period, two days). A wall was moved two metres at a cash cost of $550 to make room for the machine. The machine was considered to have two components; an engine valued at $900 (net) and the general machine for the balance of the cost. b. 0n1 January 20x4. the company purchased an automatic counter to be attached to a machine in use; the cost was $350. The estimated useful life of the counter was 7 years. and the estimated life of the machine was 10 years. On 1 January 20x4. the company bought plant xtures with a list price of $2.250. paying $750 cash and giving a one-year, non interest-bearing note payable for the balance. The current interest rate for this type of note was 15%. Use the net method to record the note payable. d. During January 20x4. the rst month of operations. the newly purchased machine became inoperative due to a defect in manufacture. The vendor repaired the machine at no cost to GTT; however, the specially-trained operator was idle during the two weeks the machine was inoperative. The operator was paid regular wages ($425) during the period, although the only work performed was to observe the repair by the factory representaItive. e. During January 20x5. the company exchanged the electric motor on the machine in part (a) for a heavier motor and gave up the old motor and $600 cash. The market value of the new motor was $1,250. The parts list showed a $900 cost for the original motor, and it had been depreciated in 20X4 (estimated life. 10 years). ME. ME. and PVAD f$1.) (Use appropriate factor(s) from the tables provided.) Required: Prepare thejournal entries to record each of the above transactions as of the date of occurrence. (if no entry is required for a transaction/event, seiect \"No journal entry required" in the first account eld. Round time value factor to 5 decimal places and final answer to the nearest whole dollar amount.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Pat Wheeler, Ulric J Gelinas, Richard B Dull

9th Edition

0538469315, 9780538469319

More Books

Students also viewed these Accounting questions

Question

answers questions 1/2

Answered: 1 week ago

Question

7. How can an interpreter influence the utterer (sender)?

Answered: 1 week ago