Expenditures After Acquisition Instructions Chart of Accounts General Journal ! Next Level Instructions McClain Company incurred the following expenditures during 2019: Apr. 9 June 29 Sept. 12 Dec. 28 The air conditioning system in the old manufacturing facility was replaced for $89,500. The old air conditioning system had a cost of $74,750 and a book value of $2,900. The old air conditioning system had no scrap value. Annual maintenance of $39,500 was performed. The roof of the old manufacturing facility is replaced at a cost of $70,000. This expenditure substantially extended the life of the facility. A new wing was added to the manufacturing facility at a cost of $255,000. This expenditure substantially increased the productive capacity of the plant. Required: 1. Prepare journal entries to record McClain's expenditures for 2019. 2. Next Level What is the effect on the financial statements if management had improperly accounted for the: a. addition of the new wing to the manufacturing facility b. annual maintenance expenditures General Journal 1. Prepare journal entries to record McClain's expenditures for 2019. General Journal Instructions How does grading work? GENERAL JOURNAL Shaded cells have feedback. X PAGE 10 Score: 113/137 DATE 1 ACCOUNT TITLE POST. REF. DEBIT CREDIT 2 3 Apr. 9 Air Conditioning System (New) Accumulated Depreciation: Air Conditioning System (Old) Air Conditioning System (Old) 89,500.00 71,850.00 74,750,00 4 Cash 11,000.00 5 Jun. 29 Repair and Maintenance Expense 39,500.00 6 Cash 39,500.00 7 Sep. 12 Accumulated Depreciation: Building 70,000.00 8 Cash 70,000.00 9 Dec. 28 Building 200,000.00 10 Cash 2,900.00 11 Cash 255,000.00