Question
Kenny Foods made the following expenditures (all paid for in cash) during 2023: Annual maintenance on production machinery, $5,000. Renovation of the refrigerated storage space
Kenny Foods made the following expenditures (all paid for in cash) during 2023:
Annual maintenance on production machinery, $5,000.
Renovation of the refrigerated storage space in Kennys warehouse to add 25% more storage area, $120,000.
Legal fees in connection with the successful defense of Kennys patent for Crazy Cauliflower, a delectable deep-fried veggie specialty product, $10,000.
Required: Assume Kenny has the following relevant accounts in their general ledger:
Patents (asset), Legal fees expense (expense), Maintenance expense (expense), Warehouse (asset), and of course, Cash (asset). Give journal entries to account for these three items.
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