Easy Self Storage Ltd. (ESSL) rents different sizes of storage units in its secure facility to customers.
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Question:
Easy Self Storage Ltd. (ESSL) rents different sizes of storage units in its secure facility to customers. ESSL has contracted CBBI to assist with its accounting while the controller is on leave. The CEO has emailed a number of requests to which you are expected to respond.
First, you have been asked to prepare the journal entries (in good form) required to account for the following October 2021 transactions:
On October 1, the roof on the building that provides indoor vehicle storage was replaced at a cost of $150,000 after ESSL noticed it was leaking. The original roof had a cost of $95,000 with accumulated amortization of $71,250 as at October 1. With the replacement roof, the buildings useful life has been extended by several years. ESSL plans to pay the contractor for the roof replacement on November 15.
In mid October, ESSLs forklift was damaged after an employee forgot the key in the ignition and a customer took it for a joyride. ESSLs insurer has since refused an insurance claim for the damage. On October 29, the damage was fixed at a cost of $6,750 cash. The fix returned the forklift to working condition, but did not improve the forklift.
ESSL componentizes its property, plant and equipment as required by paragraph .18 of ASPE Section 3061 Property, Plant and Equipment.
You plan to date the journal entries, provide detailed supporting calculations and round all amounts to the nearest dollar
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