Question

Kettle Creek Inc. has various transactions in 20X6: Plant maintenance was done at a cost of $70,400. The entire manufacturing facility was repainted at a cost of $88,000. The roof on the manufacturing facility was replaced at a cost of $132,400. At the same time, various upgrades were done to the electrical systems at a cost of $87,600. These upgrades to the electrical system were required to be in compliance with the current safety codes. Neither of these transactions increased the life of the manufacturing facility, although the safety of the facility was enhanced. The original roof was separately recorded as a component. It had a cost of $100,000 and accumulated depreciation of $96,000. Wiring was also a component, and had an original cost of $40,000, and was fully depreciated. dThe company bought a piece of machinery at an auction at a price of $161,000. The machinery had an appraised value of $190,000, so the company was pleased to get this bargain. The company knew that the machine had to be painted and tuned up. HST of 14% was paid on the purchase price. The machine was delivered to Kettle Creek's manufacturing facility. The freight bill was $3,200. The machine was painted and tuned up, at a cost of $10,400. In the process of the tune-up, it was discovered that the machine needed additional unexpected repairs, which were done at a cost of $24,000 Required: Provide journal entries to record the transactions listed above. All items were acquired for cash. (If no entry is required for a transaction/event, select journal entry required" in the first account field.) w transsctioni Journal entry worksheet Record the plant maintenance done. Note: Enter debits before credits. Transaction General Journal Debit Credit u

Answer 1

Repairs and Maintenance A/C Dr To Cash A/C $70,400 $70,400 (To record repairs and maintenance cost) $88,000 Painting Expenses A/C Dr To Cash A/C $88,000 To record painting expenses as rever Manufacturing Facility Roof A/C Dr To Cash A/C $1,32,400 $1,32,400 To record Capital expense incurred for the manufacturing facility roof) $87,600 Electical Wiring System A/C Dr To Cash A/C $87,600 (To record Capital expense incurred for the Electric Wiring System) $1,83,540 Machinery A/C Dr To Cash A/C $1,83,540 $ 1,61,000+ (14% HSTX $ 1,61,000) (To record Capital expense incurred for the machinery) Machinery A/C Dr $3,200 To Cash A/C $3,200 (To record Capital expense incurred for the machinery) $34,400 Machinery A/C Dr $34,400 $ 10,400+$ 24,000 To Cash A/C (To record Capital expense incurred for the machinery)