Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kettle Creek Inc. has various transactions in 20X6: Plant maintenance was done at a cost of $70,400. The entire manufacturing facility was repainted at a

image text in transcribed
Kettle Creek Inc. has various transactions in 20X6: Plant maintenance was done at a cost of $70,400. The entire manufacturing facility was repainted at a cost of $88,000. The roof on the manufacturing facility was replaced at a cost of $132,400. At the same time, various upgrades were done to the electrical systems at a cost of $87,600. These upgrades to the electrical system were required to be in compliance with the current safety codes. Neither of these transactions increased the life of the manufacturing facility, although the safety of the facility was enhanced. The original roof was separately recorded as a component. It had a cost of $100,000 and accumulated depreciation of $96,000. Wiring was also a component, and had an original cost of $40,000, and was fully depreciated. dThe company bought a piece of machinery at an auction at a price of $161,000. The machinery had an appraised value of $190,000, so the company was pleased to get this bargain. The company knew that the machine had to be painted and tuned up. HST of 14% was paid on the purchase price. The machine was delivered to Kettle Creek's manufacturing facility. The freight bill was $3,200. The machine was painted and tuned up, at a cost of $10,400. In the process of the tune-up, it was discovered that the machine needed additional unexpected repairs, which were done at a cost of $24,000 Required: Provide journal entries to record the transactions listed above. All items were acquired for cash. (If no entry is required for a transaction/event, select journal entry required" in the first account field.) w transsctioni Journal entry worksheet Record the plant maintenance done. Note: Enter debits before credits. Transaction General Journal Debit Credit u

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

Step: 3

blur-text-image

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

Auditing Information Systems

Authors: Jack J. Champlain

2nd Edition

0471281174, 978-0471281177

More Books

Students also viewed these Accounting questions

Question

Does it avoid use of underlining?

Answered: 1 week ago