On October 4, 2015, C and C Sandblasters Company purchased a new machine for $45,000. It estimated the machine’s useful life at 12 years and the residual value at $4,000. On March 25, 2016, another machine was acquired for $70,000. Its useful life was estimated to be 15 years and its residual value $6,000. On May 24, 2017, the first machine was sold for $28,000. The company closes its books on December 31 each year, uses the straight-line method of depreciation, and calculates depreciation to the nearest month.
Give the necessary journal entries for the years 2015 through 2017 for both machines. Include the depreciation of the second machine on December 31, 2017.

  • CreatedJune 11, 2015
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