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May I get some help on correcting number 3 please, this is al lthe information i was given. Recording Subsequent Expenditures The plant building of
May I get some help on correcting number 3 please, this is al lthe information i was given.
Recording Subsequent Expenditures The plant building of Xon Corporation is old (estimated remaining useful life is 12 years) and needs continuous maintenance and repairs. The company's accounts show that the building originally cost $600,000; and accumulated depreciation was $400,000 at the beginning of the current year. During the current year, expenditures relating to the plant building are made. Prepare the journal entry to record each of the following expenditures, assuming all items are paid in cash. Instructions Round your answers to the nearest whole number Record debit accounts in alphabetical order using the first letter of the account name. Dr. Cr. 1. Continuing, frequent, and low-cost repairs: $34,000 Account Name Repair Expense Cash 34,000 0 34,000 Cr. 2. Added a new storage shed attached to the building; estimated useful life of 8 years: $72,000 Account Name Dr. Building 72,000 Cash 0 72,000 0 3. Removed roof with original cost, $80,000; replaced it with guaranteed, modern roof: $100,000 Account Name Dr. Cr. Accumulated Depreciation 100,000 X Loss on Asset Replacement 100,000 X 0 Building 0 80,000 To remove old roof. Building 100,000 0 Cash 0 100,000 To record new roofStep by Step Solution
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