Question

The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year Jan. 30 A building that cost $192,720 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,446 and was permitted to keep all materials salvaged. Mar. 10 Machinery that was purchased in 2013 for $23.360 is sold for $4,234 cash, f.o.b. purchaser's plant. Freight of $438 is paid on the sale of this machinery. Mar. 20 Agear breaks on a machine that cost $13,140 in 2012. The gear is replaced at a cost of $2.920. The replacement does not extend the useful life of the machine but does make the machine more efficient. May 18 A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $8,030 because of defective workmanship on the original base. The cost of the machinery was $20.732 in 2014. The cost of the base was $5,110, and this amount was charged to the Machinery account in 2014. June 23 One of the buildings is repainted at a cost of $10,074. It had not been painted since it was constructed in 2016. Prepare general journal entries for the transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit 1/30 3/10 5/18

Answer 1

Journal entries
Date	Particulars			Debit	Credit
30-Jan	accumulated depreciation-building			163812
	(192720*5%)*17years
	loss on disposal of plant assets			36354
	building				192720
	cash				7446
10-May	accumulated depreciation-machinery			16352
	(23360*10%)*7years
	loss on disposal of plant assets			3212
	cash (4234-438)			3796
	machinery				23360
20-May	Machinery			2920
	cash				2920
18-May	machinery			8030
	accumulated depreciation-machinery (5110*10%)6yr			3066
	loss on disposal of plant assets			2044
	cash				8030
	Machinery				5110
23-Jun	maintenance expenses			10074
	cash				10074

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