Rhodes Corp. operates a plant in a building adjacent to its office building. The plant building is old and requires continuous maintenance and repairs. During the year, the following cash expenditures relating to the plant building were incurred:
|
a. |
Continuing, frequent, and low-cost repairs |
$26,000 |
|
b. |
Overhaul of the plumbing system (old costs unknown) |
17,000 |
|
c. |
Construction of a new storage shed attached to the plant building (estimated useful life, ten years) |
48,000 |
|
d. |
Replacement of old shingle roof with a new tile roof (cost of the old shingle roof was $30,000; accumulated depreciation was $5,000) |
60,000 |
|
e. |
Inspection of heating furnaces (prior inspection costs totalled $4,000; ½ of these amounts had been depreciated) |
10,000 |
Required: Prepare journal entries to record each of items a to e. Assume all listed costs are material in amount.
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