Question

Make appropriate journal entries for the following:

10 January 5: Pane performs renovations to convert a previously empty wing of their warehouse into additional production facilities. During the renovation, they also perform annual maintenance on their existing machines. They pay for both the renovation and maintenance in cash. $275,000 New production wing Useful life of addition Maintenance on existing machines 20 $55,000 January 12: Pane purchased inventory on account. Inventory Purchased $37,000,000 January 15: The company pays off the previous year's (2018) payroll tax liabilities (see the trial balance on the "Information" tab to get the amounts). 10 March 31: Pane purchases a machine for cash to make stained glass windows. The contract has terms of 2/10, n/30. The company pays in time to receive the discount. The machine has no residual value. (Hint: sales tax and discount should be calculated as a % of list price). Contract Price: Transportation Costs: Installation Costs: Sales Tax (% of original invoice amount): Useful Life of Machine (years) $125,700 $4,300 $7,500 7.5%

Answer 1