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28 Sep 2019
Clarion Contractors completed the following transactions and eventsinvolving the purchase and operation of equipment in itsbusiness.
2010
Jan. 1 Paid $318,000 cash plus $12,720 in sales tax and $1,900 intransportation (FOB shipping point) for a new loader. The loader isestimated to have a four-year life and a $31,800 salvage value.Loader costs are recorded in the Equipment account.
Jan. 3 Paid $7,000 to enclose the cab and install air conditioningin the loader to enable operations under harsher conditions. Thisincreased the estimated salvage value of the loader by another$2,100.
Dec. 31 Recorded annual straight-line depreciation on theloader.
2011
Jan. 1 Paid $4,800 to overhaul the loaderâs engine, which increasedthe loaderâs estimated useful life by two years.
Feb. 17 Paid $1,200 to repair the loader after the operator backedit into a tree.
Dec. 31 Recorded annual straight-line depreciation on theloader.
Required:
Prepare journal entries to record these transactions andevents.
Clarion Contractors completed the following transactions and eventsinvolving the purchase and operation of equipment in itsbusiness.
2010
Jan. 1 Paid $318,000 cash plus $12,720 in sales tax and $1,900 intransportation (FOB shipping point) for a new loader. The loader isestimated to have a four-year life and a $31,800 salvage value.Loader costs are recorded in the Equipment account.
Jan. 3 Paid $7,000 to enclose the cab and install air conditioningin the loader to enable operations under harsher conditions. Thisincreased the estimated salvage value of the loader by another$2,100.
Dec. 31 Recorded annual straight-line depreciation on theloader.
2011
Jan. 1 Paid $4,800 to overhaul the loaderâs engine, which increasedthe loaderâs estimated useful life by two years.
Feb. 17 Paid $1,200 to repair the loader after the operator backedit into a tree.
Dec. 31 Recorded annual straight-line depreciation on theloader.
Required:
Prepare journal entries to record these transactions andevents.
2010
Jan. 1 Paid $318,000 cash plus $12,720 in sales tax and $1,900 intransportation (FOB shipping point) for a new loader. The loader isestimated to have a four-year life and a $31,800 salvage value.Loader costs are recorded in the Equipment account.
Jan. 3 Paid $7,000 to enclose the cab and install air conditioningin the loader to enable operations under harsher conditions. Thisincreased the estimated salvage value of the loader by another$2,100.
Dec. 31 Recorded annual straight-line depreciation on theloader.
2011
Jan. 1 Paid $4,800 to overhaul the loaderâs engine, which increasedthe loaderâs estimated useful life by two years.
Feb. 17 Paid $1,200 to repair the loader after the operator backedit into a tree.
Dec. 31 Recorded annual straight-line depreciation on theloader.
Required:
Prepare journal entries to record these transactions andevents.
Sixta KovacekLv2
28 Sep 2019