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 2 years agoRelated Solutions
On January 1, 2020, a machine was purchased for $900,000 by Young Co. The machine is...
On January 1, 2020, a machine was purchased for $900,000 by
Young Co. The machine is expected to have an 8-year life with no
salvage value. It is to be depreciated on a straight-line basis.
The machine was leased to St. Leger Inc. for 3 years on January 1,
2020, with annual rent payments of $150,955 due at the beginning of
each year, starting January 1, 2020. The machine is expected to
have a residual value at the end of...
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $240,000 cash on January
2. On January 3, Onslow paid $6,000 to wire electricity to the
machine and an additional $1,200 to secure it in place. The machine
will be used for six years and have a $28,800 salvage value.
Straight-line depreciation is used. On December 31, at the end of
its fifth year in operations, it is disposed of.
Required:
1. Prepare journal entries to record the machine's
purchase and the costs...
Train Co. purchased a used machine for $288,000 cash on January 2. On January 3, Onslow...
Train Co. purchased a used machine for $288,000 cash on January
2. On January 3, Onslow paid $8,000 to wire electricity to the
machine and an additional $1,600 to secure it in place. The machine
will be used for six years and have a $34,560 salvage value.
Straight-line depreciation is used. On December 31, at the end of
its fifth year in operations, it is disposed of.
Prepare journal entries to record the machine's purchase and the
costs to ready...
Onslow Co. purchased a used machine for $288,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $288,000 cash on January
2. On January 3, Onslow paid $6,000 to wire electricity to the
machine and an additional $1,200 to secure it in place. The machine
will be used for six years and have a $34,560 salvage value.
Straight-line depreciation is used. On December 31, at the end of
its fifth year in operations, it is disposed of.
1. Prepare journal entries to record the
machine's purchase and the costs to...
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $240,000 cash on January
2. On January 3, Onslow paid $6,000 to wire electricity to the
machine and an additional $1,200 to secure it in place. The machine
will be used for six years and have a $28,800 salvage value.
Straight-line depreciation is used. On December 31, at the end of
its fifth year in operations, it is disposed of.
3. Prepare journal entries to record the
machine’s disposal under each separate situation:...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine
to be used in the fabrication of a part for one of its key
products. The machine cost $80,000, and its estimated useful life
was four years or 1,000,000 cuttings, after which it could be sold
for $5,000.
Calculate the depreciation expense for each year of the
machine's useful life under each of the following methods:
a. Straight-line
b. Double-Declining balance
c. Units of Production. Assume annual production in...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine to be used in the...
On January 2, 2015, Roth, Inc. purchased a laser cutting machine
to be used in the fabrication of a part for one of its key
products. The machine cost $120,000, and its estimated useful life
was four years or 1,150,000 cuttings, after which it could be sold
for $5,000.
Required
a. Calculate each year’s depreciation expense for the machine's
useful life under each of the following depreciation methods (round
all answers to the nearest dollar):
1. Straight-line.
2. Double-declining balance....
Fieldman Company purchased a machine for leasing purposes on January 1, 2020, for $1,500,000. The machine...
Fieldman Company purchased a machine for leasing purposes on
January 1, 2020, for $1,500,000. The machine has a 10-year life,
has no residual value, and will be depreciated on a straight-line
basis. On January 2, 2020, Fieldman leased the machine to Dahlia
Company for $150,000 a year for a five-year period ending December
31, 2024. Dahlia does not guarantee a residual value of the machine
at lease-end, although Dahlia can purchase the machine at the end
of the lease term...
Depreciation Methods On January 2, 2018, Skyler, Inc. purchased a laser cutting machine to be used...
Depreciation Methods
On January 2, 2018, Skyler, Inc. purchased a laser cutting
machine to be used in the fabrication of a part for one of its key
products. The machine cost $120,000, and its estimated useful life
was four years or 920,000 cuttings, after which it could be sold
for $5,000.
Required
a. Calculate each year’s depreciation expense for the machine's
useful life under each of the following depreciation methods (round
all answers to the nearest dollar):
1. Straight-line.
2....
On January 1, 2020, Concord Corporation purchased a new machine for $4130000. The new machine has...
On January 1, 2020, Concord Corporation purchased a new machine
for $4130000. The new machine has an estimated useful life of nine
years and the salvage value was estimated to be $143000.
Depreciation was computed using the sum-of-the-years'-digits
method. What amount should be shown in Concord's balance sheet at
December 31, 2021, net of accumulated depreciation, for this
machine?
$2535200
$3987000
$3332600
$2623800
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Modern; The Accordionist by Pablo Picasso aritst 1How is it inspiring? 2In what way is it...
- Which of the following is not a router component? Group of answer choices RAM NVRAM Flash...
- A risk-free investment of $5000 will return 3%. A risky $5000 investment has a 23% chance...
- Assume that attributes with the same name in different relations represent the same domain and that...
- JAVA: Use existing Java Stack class to solve the "Balancing Symbols" problem. The symbols are (),...
- K-NN and Perceptron theory question If we don’t care about the size of the TRAINING SET...
- Make a C program that simulates time-sharing in the operating system. Please follow the instructions provided:...
ADVERTISEMENT