Problem 1 Shaw Corporation recently requested a contractor to prepare a proposal to refurbish the exterior of its office building. Shaw wanted to give its building a "face lift" The contractor provided the following bid document: Add extension to front porch approac $70,000 Install shrubs and trees 8,750 Replace rotting exterior siding material 26,250 Replace burned out exterior light bulbs 1,750 Assume that Shaw Corporation agreed to the bid, and authorized the work. What journal entry would be appropriate for each of the above expenditures? Worksheet GENERAL JOURNAL Date Accounts Debit Credit To record addition to existing building Worksheet GENERAL JOURNAL Date Accounts Debit Credit To record addition to existing building To record addition of landscaping To record replacement of siding material To record replacement of light bulbs Propiem 2 Span Forklift invested in $100,000 of face amount of 8-year bonds issued by Harris BioResearch Company on January 1, 20X1. The bonds were purchased at 102, and bear interest at a stated rate of 6% per annum, payable semiannually. a) Prepare the journal entry to record the initial investment on January, 20X1. b) Prepare the journal entry that Span Forklift would record on each interest date. c) Prepare the journal entry that Span Forklift would record at maturity of the bonds. d) How much cash flowed "in" and "out" on this investment, and how does the difference compare to total interest income that was recognized? Worksheet a), b), c) GENERAL JOURNAL Date Accounts Debit Credit Issue Worksheet a), b), c) GENERAL JOURNAL Date Issue Accounts Debit Credit S Interest Maturity SI Problem 3 On January 1, 20X5, Titanium Mines purchased a new mining excavator for one of its mines. The machine cost $1,250,000 and has a service life of 12,500 hours. Regulations require careful records of usage, and the machine must be replaced or rebuilt at the end of the 12,500 hour service period. Titanium simply chooses to sell its used machines and acquire new ones. Used machines are expected to be resold for 1/4 of their original cost. Titanium uses the units-of-output depreciation method. a) Assuming that the machine was used as follows, prepare a schedule showing annual depreciation expense, accumulated depreciation and related calculations for each year. 20X5 3,250 hours 20X6 3,500 hours 20X7 3,000 hours 20X8 2,750 hours b) Show how the asset and related accumulated depreciation would appear on a balance sheet at December 31, 20X6. c) Prepare journal entries to record the asset's acquisition, annual depreciation for each year, and the asset's eventual sale for $312,500. O Type here to search Worksheet Annual Expense Accumulated Depreciation at End of Year Annual Expense Calculation Property, Plant & Equipment (2026) Aircraft engine Less: Accumulated depreciation GENERAL JOURNAL Date Accounts Debit Credit 1-Jan To record the purchase of machine 31-Dec 20x5 To record 20x5 depreciation 31-Dec 2006 To record 20x6 depreciation 31-Dec 20x7 To record 20x7depreciation 31-Dec 20x8 To record 20x8 depreciation 31-Dec 20X6 To record 20x6 depreciation 31-Dec 20X7 To record 20X7depreciation 31-Dec 20x8 To record 20X8 depreciation 31-Dec 20x8 To record disposal of asset