LaGarde Company has a machine that it purchased for $125,000 on January 1. Annual depreciation on the

Question:

LaGarde Company has a machine that it purchased for $125,000 on January 1. Annual depreciation on the machine is estimated to be $11,400.

Required:
1. Prepare the adjusting entry needed at the end of the year.
2. What is the book value of the machine reported on LaGarde’s at the end of the year?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...