Reference no: EM132979025

Question - Renotainted Inc. spent the following amounts on property, plant, and equipment during the year. If necessary, assume transactions take place at the beginning of the year.

1. The municipality charges an assessment of $80 per foot on all frontages for sewer upgrades. Renotainted received an assessment of: $ 40,000.00.

2. Renotainted changed the tires on its backhoe at a cost of: $ 60,000.00. The new tires will not extend the life of the backhoe.

3. Renotainted adds computer assisted controls to its backhoe at a cost of: $ 70,000.00. These controls allow the backhoe to operate with greater precision. As a result, the equipment can now be used on a greater variety of jobs. Additionally, the residual value of the equipment is increased by $3,000.

4. Renotainted replaces the engine of its grader with a new engine. The new engine will increase the expected life of the equipment by 12 years. The new engine has a cost of: $ 50,000.00. The old engine has the following cost and accumulated depreciation to the date of disposal:

Cost $30,000.00

Accumulated depreciation $20,000.00

Required - Prepare journal entries to record each of the above expenditures that were made during the year.