Question

Exercise 10-22 Your answer is partially correct. Try again 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. A building that cost $184,800 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $7,140 and was permitted to keep all materials salvaged. Machinery that was purchased in 2013 for $22,400 is sold for $4,060 cash, f.o.b. purchaser's plant. Freight of $420 is paid on the sale of this machinery. A gear breaks on a machine that cost $12,600 in 2012. The gear is replaced at a cost of $2,800. The replacement does not extend the useful life of the machine but does make the machine more efficient A special base installed for a machine in 2014 when the machine was purchased has to be replaced at a cost of $7,700 because of defective workmanship on the original base The cost of the machinery was $19,880 in 2014. The cost of the base was $4,900, and this amount was charged to the Machinery account in 2014. One of the buildings is repainted at a cost of $9,660. It had not been painted since it was constructed in 2016. Jan. 30 Mar. 10 Mar. 20 May 18 June 23 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.) Debit Date Account Titles and Explanation Credit 1/30ACcumulated Depreciation-Buildings TLOSS on Disposal of Buildings Buildings 140.לן Cash 3/10 Cash Accumulated Depreciation-Machinery Loss on Disposal of Machinery 22,400 TMachinery 3/20 Machinery 2,800 2,800 Cash 5/18Machinery TAccumulated Depreciation-Machinery Loss on Disposal of Machinery TMachinery 4,900 Cash 7,700 O/23 TMaintenance and Repairs Expense 19,660 9,660 TCash

Answer 1

Date	Account Titles and Explanation	Debit	Credit
1/30	Accumulated Depreciation - Buildings	$157,080		($184,800 x 5% x 17 years)
	Loss on Disposal of Buildings	$34,860
	Buildings		$184,800
	Cash		$7,140
3/10	Cash	$3,640
	Accumulated Depreciation - Machinery	$15,680		($22,400 x 10% x 7 years)
	Loss on Disposal of Machinery	$3,080
	Machinery		$22,400
3/20	Machinery	$2,800
	Cash		$2,800
5/18	Machinery	$7,700
	Accumulated Depreciation - Machinery	$2,940		($4,900 x 10% x 6 years)
	Loss on Disposal of Machinery	$1,960
	Machinery		$4,900
	Cash		$7,700
5/23	Maintenance and Repairs Expense	$9,660
	Cash		$9,660