Objective: To record various plant asset transactions

Freezor Company had the following transactions relating to its plant assets in 2011:

Directions: Record each of the transactions in general journal form

2011

Aug.

1 Purchased office furniture on account, $6,700. Freight charges on the purchase amounted to an additional $102.

4 Purchased a truck for $17,500. Paid $3,000 cash and gave a note for the balance.

5 Installed new wiring throughout the building at a cost of $30,000. It is expected that thelife of the building will be extended as a result.

6 Sold an old truck with a cost of $11,000 and accumulated depreciation prior to the current year of $9,600 for $800. Depreciation has been

recorded at the rate of $1,800 a year but has not yet been recorded for 2011.

9 Discarded a printer that had been purchased for $975 and was fully depreciated.

10 Traded in old office equipment for new office equipment listing at $3,200. The cost of the old equipment was $3,000, and the accumulated depreciation through the date of trade of $200. Received a $2,850 trade-in allowance and paid the balance in cash. The accounting method is

used.

14 Paid for ordinary repairs to some store equipment, $110.

17 Purchased for cash a fax machine for the office. The list price was $790, but a 15% trade discount was received.

22 Installed a new control system for the lighting equipment in the firm that will add value to the equipment. The cost of $17,000 was paid in cash.

31 Recorded depreciation on the office furniture purchased on August 1. The straight-line method is used. There is an estimated life of 10 years and an estimated salvage value of $550.

31 Recorded depreciation on the truck purchased on August 4. The units-of-production method is used. The truck has a useful life of 50,000 miles and a salvage value of $2,000. It was driven 1,100 miles in August.

Check Figure: August 6 Gain on disposal = $450