A second-hand machine was purchased on October 1, 1990, for $230,000 and repair charges of $6,000....

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A second-hand machine was purchased on October 1, 1990, for $230,000 and repair charges of $6,000. It was installed at Cast & Co. on January 1, 1991. The machine was purchased for $26,000 on July 1, 1992. The same machine was sold for $230,000 on the same date. Another machine was bought for $225,000 on December 31, 1992. The machine bought on July 1 was sold for $231,000. Accounts are closed every year on December 31. Depreciation is written off at 15% per annum. Prepare the machinery account for 3 years. A second-hand machine was purchased on October 1, 1990, for $230,000 and repair charges of $6,000. It was installed at Cast & Co. on January 1, 1991. The machine was purchased for $26,000 on July 1, 1992. The same machine was sold for $230,000 on the same date. Another machine was bought for $225,000 on December 31, 1992. The machine bought on July 1 was sold for $231,000. Accounts are closed every year on December 31. Depreciation is written off at 15% per annum. Prepare the machinery account for 3 years.

Answer rating: 100% (QA)

Machinery Account 19901992 Debit Date 1990 Oct01 1991 Jan01 1991 Dec31 1992 Jul01 199... View the full answer