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 $166,320 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,426 and was permitted to keep all materials salvaged.
Mar. 10		Machinery that was purchased in 2013 for $20,160 is sold for $3,654 cash, f.o.b. purchaser’s plant. Freight of $378 is paid on the sale of this machinery.
Mar. 20		A gear breaks on a machine that cost $11,340 in 2012. The gear is replaced at a cost of $2,520. 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 $6,930 because of defective workmanship on the original base. The cost of the machinery was $17,892 in 2014. The cost of the base was $4,410, and this amount was charged to the Machinery account in 2014.
June 23		One of the buildings is repainted at a cost of $8,694. 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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
1/30
3/10
1/303/103/205/186/23
5/18
1/303/103/205/186/23

Answer 1

Date	Account Tittle and Explanations	Debit	Credit
1/30	Accumulated Depreciation - Building ( $ 166,320 x 5% x 17 Years )	$ 141,372
	Loss on Disposal of Building   - Bal. Fig.	$ 31,374
	Buildings		$ 166,320
	Cash		$ 6,426
	(To record the disposal on Building )
3/10	Cash ( $ 3,654 (-) $ 378)	$ 3,276
	Accumulated Depreciation - Machinery ( $ 20,160 x 10% x 7 Years )	$ 14,112
	Loss on disposal of machinery     - Bal. Fig.	$ 2,772
	Machinery		$ 20,160
	(To record the disposal of Machinery )
3/20	Machinery	$ 2,520
	Cash		$ 2,520
5/18	Machinery	$ 6,930
	Accumulated depreciation-Machinery ( $ 4,410 x 10% x 6 Years )	$ 2,646
	Loss on disposal of machinery	$ 1,764
	Machinery		$ 4,410
	Cash		$ 6,930
	(To record the disposal of Machinery )
6/23	Maintenance and Repairs expense	$ 8,694
	Cash		$ 8,694