Question
May I get some help? What do you mean not in proper format? Recording Subsequent Expenditures The plant building of Xon Corporation is old (estimated
May I get some help? What do you mean not in proper format?
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 companys 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.
1. Continuing, frequent, and low-cost repairs: $34,000
Account Name | Dr. | Cr. |
---|---|---|
Answer | Answer | |
Answer | Answer |
2. Added a new storage shed attached to the building; estimated useful life of 8 years: $72,000
Account Name | Dr. | Cr. |
---|---|---|
Answer | Answer | |
Answer | Answer |
3. Removed roof with original cost, $80,000; replaced it with guaranteed, modern roof: $100,000
Account Name | Dr. | Cr. |
---|---|---|
Answer | Answer | |
Answer | Answer | |
Answer | Answer | |
To remove old roof. | ||
Answer | Answer | |
Answer | Answer | |
4. Unusual and infrequent repairs due to damage from flood; repairs did not increase the use, value, or the economic life of the asset: $12,000
Account Name | Dr. | Cr. |
---|---|---|
Answer | Answer | |
Answer | Answer |
5. Complete overhaul of the plumbing system (old costs unknown): $25,000
Account Name | Dr. | Cr. |
---|---|---|
Answer | Answer | |
Answer | Answer |
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