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Simon, Inc. had the following transactions, which you are to journalize. a) Machinery, at a cost of $200,000, was purchased for cash. Simon took a
Simon, Inc. had the following transactions, which you are to journalize. a) Machinery, at a cost of $200,000, was purchased for cash. Simon took a 2% discount, paid $5,000 to have the machinery installed, paid $2,000 in testing costs, paid $3,000 in freight charges, and paid $500 in repairs to the machinery which was damaged shortly after installation (take your credit to Cash). b) Land, at a cost of $250,000, was purchased for cash (the land is intended for use and not for investment). Simon paid $2,000 for a survey of the land, paid $5,000 to have the building on the land razed, and paid $25,000 to pave a road the land (take your credit to Cash). c) Simon sold a building which cost $300,000, had a book value of $100,000, for $125,000. The building was sold for cash. (Assume that deprecation is up-to-date on the books)
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