Answer:
Here are your general entries:)
Profit and loss account $19,800
Accumulated depreciation $112,200
To Building $132,000
( Building torn down recorded)
Building torn down expense $5,100
To cash $5,100
(paid to contractor)
Cash $2,100
Accumulated depreciation $11,200
Profit and loss account $1,900
To machinery $16,000
(disposal of machine recorded)
Freight expense $300
To cash $300
(freight paid recorded)
Repairs of machinery $2,000
To cash $2,000
(New gear brake added to machinery)
Profit and loss account $1,400
Accumulated depreciation $2,100
To old base $3,500
(old base expensed out)
Machinery account $5,500
To cash $5,500
(New base constructed)
Depreciation of base $550
To accumulated depreciation $550
Paint of building expense $6,900
To cash $6,900
Explanation:
Addition of gear brake not added to cost of machinery because it does not extend the useful life of machine.
