King Donovan Resources Group has been in its plant facility for 15 years. Althou
ID: 2597941 • Letter: K
Question
King Donovan Resources Group has been in its plant facility for 15 years. Although the plant is quite functional, numerous repair costs are incurred to maintain it in sound working order. The company’s plant asset book value is currently $800,000, as indicated below.
$1,200,000
400,000
$800,000
During the current year, the following expenditures were made to the plant facility.
Indicate how each of these transactions would be recorded in the accounting records.
$1,200,000
Accumulated depreciation400,000
Book value$800,000
Explanation / Answer
Journal
No. Account Name Debit Credit a. Plant 270000 Cash/ Notes payable 270000 b. Improvement expense 23000 Cash 23000 c. Plant Asset (Roof) 61000 Accumulated depreciation 19000 Loss on Disposal 41000 Plant Asset 60000 Cash 61000 d. Repair expense 22000 Cash 22000 e. Accumulated depreciation 47000 Cash 47000Related Questions
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