Question
In: Accounting
Vita Water purchased a used machine for $117,800 on January 2, 2020. It was repaired the...
Vita Water purchased a used machine for $117,800 on January 2,
2020. It was repaired the next day at a cost of $5,663 and
installed on a new platform that cost $1,537. The company predicted
that the machine would be used for six years and would then have a
$21,320 residual value. Depreciation was to be charged on a
straight-line basis to the nearest whole month. A full year’s
depreciation was recorded on December 31, 2020. On September 30,
2025, it was retired.
Required:
1. Prepare journal entries to record the purchase of the
machine, the cost of repairing it, and the installation. Assume
that cash was paid.
2. Prepare entries to record depreciation on the
machine on December 31 of its first year and on September 30 in the
year of its disposal. (Round intermediate calculations to
the nearest whole dollar.)
3. Prepare entries to record the retirement of the
machine under each of the following unrelated
assumptions:
a. It was sold for $24,000.
b. It was sold for $27,000.
c. It was destroyed in a fire and the insurance
company paid $27,000 in full settlement of the loss
claim.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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$2535200
$3987000
$3332600
$2623800
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