GTT Company had the following transactions in 20X4:

1. Machine Purchase and Related Costs (1 January 20X4):
- A new machine was purchased at a list price of $30,500.
- The company did not take advantage of a 2% cash discount for full payment within 30 days.
- Shipping cost paid by the vendor was $420.
- Installation cost was $1,260, including $420 representing 10% of the monthly salary of the factory superintendent (installation period, two days).
- A wall was moved two meters at a cash cost of $870 to accommodate the machine.
- The machine was considered to have two components:
- Engine valued at $1,300 (net).
- General machine for the balance of the cost.

2. Automatic Counter Purchase (1 January 20X4):
- An automatic counter was purchased to be attached to a machine in use, costing $462.
- Estimated useful life of the counter: 7 years.
- Estimated useful life of the machine: 10 years.

3. Plant Fixtures Purchase (1 January 20X4):
- Plant fixtures with a list price of $3,450 were purchased.
- Payment included $1,150 cash and a one-year, non-interest-bearing note payable for the balance.
- The current interest rate for this type of note was 15%.
- Use the net method to record the note payable.

4. Machine Inoperative and Repair (January 20X4):
- The newly purchased machine became inoperative due to a manufacturing defect.
- The vendor repaired the machine at no cost to GTT.
- The operator was idle for two weeks during the repair and was paid regular wages ($585), despite only observing the repair by the factory representative.

5. Motor Exchange (January 20X5):
- The electric motor on the machine was exchanged for a heavier motor.
- GTT gave up the old motor and $920 cash.
- Market value of the new motor was $1,890.
- Parts list showed a $1,380 cost for the original motor, which had been depreciated in 20X4 (estimated life, 10 years).

1. On January 1, 20X4, GTT purchased a new machine for $30,500. They did not take advantage of a 2% cash discount. The vendor also paid $420 for shipping. The installation cost, including $420 for the factory superintendent's salary, was $1,260. Additionally, a wall was moved for $870 to make room for the machine. The machine had two components: an engine valued at $1,300 (net) and the general machine for the remaining cost.

2. On January 1, 20X4, GTT also purchased an automatic counter for $462. The counter had an estimated useful life of 7 years, while the machine's estimated life was 10 years.

3. GTT bought plant fixtures with a list price of $3,450 on January 1, 20X4. They paid $1,150 in cash and issued a one-year, non-interest-bearing note payable for the balance. The note payable was recorded using the net method.

4. In January 20X4, the newly purchased machine became inoperative due to a defect. The vendor repaired it at no cost, but the specially trained operator was idle during the two weeks. The operator received regular wages ($585) for observing the repair.

5. In January 20X5, GTT exchanged the electric motor on the machine purchased in part (a) for a heavier motor. They gave up the old motor and $920 cash. The market value of the new motor was $1,890. The original motor had a cost of $1,380, which was depreciated in 20X4.These transactions highlight the purchase, maintenance, and exchange of equipment by GTT Company during the stated period.

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