Question

Please enter the following entry into a general journal and clearly label with debits and credits. Thanks.

(9) A spray machine was purchased on October 1, 20×7. The cost of the machine was $165,000. The terms of the agreement were fob destination and the shipping costs were $3,000. The area of the building in which this machine was located had to be specially ventilated and partitioned to control fumes and dust. The cost of the building refurbishing was $35,000. The company used their own maintenance employees to complete the job as part of their regular work schedule, and their cost of the refurbishing was an additional $12,000. The machine had an eight-year life with a salvage value of $20,000. The company paid cash to have the building refurbished, signed a note for $125,000 and paid cash for the balance due on the machine.