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Adjusting Journal Entry using Activity based method: Purchased Machinery $10,000. Costs associated with the purchase are:...

Adjusting Journal Entry using Activity based method:

Purchased Machinery $10,000. Costs associated with the purchase are: freight-in costs of $300, and construction of specialized platform to hold the machine, $500. All amounts are paid with cash. Estimated useful life is 20,000 machine hours, with a $1,000 Salvage Value.

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The answer is attached along with an example to record adjustment entry for depreciation,

Please refer,

If you have any doubts or answer is not in the format as you are expected, please send me a comment before rating my answer and i will clarify the doubt

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ekkarill92 answered 1 year ago
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