Analysis of subsequent expenditures for items relating to fixed assets (PP&E). Journal entries are prepared for the transactions.
See attached file. E10-22 The following transactions occurred during 2008. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the ye