Question: Delta Manufacturing paid 62 000 to purchase a computerized assembly machine

Delta Manufacturing paid $62,000 to purchase a computerized assembly machine on January 1, 2016. The machine had an estimated life of eight years and a $2,000 salvage value. Delta’s financial condition as of January 1, 2019, is shown in the following financial statements model. Delta uses the straight-line method for depreciation.
Delta Manufacturing made the following expenditures on the computerized assembly machine in 2019:
Jan. 2 Added an overdrive mechanism for $8,000 that would improve the overall quality of the performance of the machine but would not extend its life. The salvage value was revised to $2,500.
Aug. 1 Performed routine maintenance, $1,250.
Oct. 2 Replaced some computer chips (considered routine), $800.
Dec. 31 Recognized 2019 depreciation expense.
a. Record the 2019 transactions in a statements model like the preceding one.
b. Prepare journal entries for the 2019 transactions.

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  • CreatedApril 20, 2015
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