At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The...
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At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began A B C () By the end of the first year, each machine had been operating 8,000 hours. Required: 1. Compute the cost of each machine. Machine A B ABC 1 с No $ 43,200 $ 26,600 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Machine A $9,400 1,000 800 500 Answer is complete and correct. Cost of Machine $11,200 Life 5 years 20,000 hours 10 years Transaction 1 Machine B Machine C $22,400 $38,600 1,600 2,600 1,100 2,500 2,100 1,000 Estimates Residual Value $1,400 1,000 1,800 Depreciation Method Straight-line Units-of-production Double-declining-balance Answer is complete but not entirely correct. General Journal Depreciation Expense Accumulated Depreciation - Machine A Accumulated Depreciation - Machine B Accumulated Depreciation - Machine C Debit 23,960 Credit 1,960 16,680 5,320 At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began A B C () By the end of the first year, each machine had been operating 8,000 hours. Required: 1. Compute the cost of each machine. Machine A B ABC 1 с No $ 43,200 $ 26,600 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Machine A $9,400 1,000 800 500 Answer is complete and correct. Cost of Machine $11,200 Life 5 years 20,000 hours 10 years Transaction 1 Machine B Machine C $22,400 $38,600 1,600 2,600 1,100 2,500 2,100 1,000 Estimates Residual Value $1,400 1,000 1,800 Depreciation Method Straight-line Units-of-production Double-declining-balance Answer is complete but not entirely correct. General Journal Depreciation Expense Accumulated Depreciation - Machine A Accumulated Depreciation - Machine B Accumulated Depreciation - Machine C Debit 23,960 Credit 1,960 16,680 5,320
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Related Book For
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
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