Required: Prepare journal entries to record these transactions and events. ...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Required:
Prepare journal entries to record these transactions and events.
Champion Contractors completed the following transactions and events involving the purchase and operation of equipment in its business.
2014
Jan.
1
Paid $282,000 cash plus $11,280 in sales tax and $2,000 in transportation (FOB shipping point) for a new loader. The loader is estimated to have a four-year life and a $28,200 salvage value. Loader costs are recorded in the Equipment account.
Jan.
3
Paid $7,000 to enclose the cab and install air-conditioning in the loader to enable operations under harsher conditions. This increased the estimated salvage value of the loader by another $2,100.
Dec.
31
Recorded annual straight-line depreciation on the loader.
2015
Jan.
1
Paid $4,800 to overhaul the loaders engine, which increased the loaders estimated useful life by two years.
Feb.
17
Paid $1,200 to repair the loader after the operator backed it into a tree.
Dec.
31
Recorded annual straight-line depreciation on the loader.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
