Jada Company had the following transactions during the year: • Purchased a machine for $500,000 using a long-term note to finance it • Paid $500 for ordinary repair • Purchased a patent for $44,000 cash • Paid $170,000 cash for addition to an existing building • Paid $59,000 for monthly salaries • Paid $150 for routine maintenance on equipment • Paid $14,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year? Capitalized $fill in the blank 1 Expensed $fill in the blank 2
Jada Company had the following transactions during the year: • Purchased a machine for $500,000 using a long-term note to finance it • Paid $500 for ordinary repair • Purchased a patent for $44,000 cash • Paid $170,000 cash for addition to an existing building • Paid $59,000 for monthly salaries • Paid $150 for routine maintenance on equipment • Paid $14,000 for extraordinary repairs If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year? Capitalized $fill in the blank 1 Expensed $fill in the blank 2
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 2EA: Jada Company had the following transactions during the year: Purchased a machine for $500,000 using...
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Jada Company had the following transactions during the year:
• Purchased a machine for $500,000 using a long-term note to finance it
• Paid $500 for ordinary repair
• Purchased a patent for $44,000 cash
• Paid $170,000 cash for addition to an existing building
• Paid $59,000 for monthly salaries
• Paid $150 for routine maintenance on equipment
• Paid $14,000 for extraordinary repairs
If all transactions were recorded properly, what amount did Jada capitalize for the year, and what amount did Jada expense for the year?
| Capitalized | $fill in the blank 1 |
| Expensed | $fill in the blank 2 |
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