Question

Jada Company had the following transactions during the year:

• Purchased a machine for $440,000 using a long-term note to finance it.
• Paid $460 for ordinary repair.
• Purchased a patent for $48,000 cash.
• Paid $160,000 cash for addition to an existing building.
• Paid $52,000 for monthly salaries.
• Paid $240 for routine maintenance on equipment.
• Paid $10,000 for major repairs.
• Depreciation expense recorded for the year is $20,000.

A. If all transactions were recorded properly, what is the amount of increase to the Property, Plant, and Equipment section of Jada’s balance sheet resulting from this year’s transactions?

$

B. What amount did Jada report on the income statement for expenses for the year?

$

Answer 1