On January 1, 2021, Swifty Company purchased on credit machinery costing $190,500 and incurred $6,445 in...

 

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On January 1, 2021, Swifty Company purchased on credit machinery costing $190,500 and incurred $6,445 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11,830. The company uses the straight-line method of depreciation. At the end of 2022, Swifty recorded depreciation and assessed the asset, determining a recoverable amount of $158,600. Swifty sold the equipment to Voilex Corporation on June 30, 2023, for $156,000. Prepare the necessary entries assuming Swifty has a December 31 year-end. On January 1, 2021, Swifty Company purchased on credit machinery costing $190,500 and incurred $6,445 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11,830. The company uses the straight-line method of depreciation. At the end of 2022, Swifty recorded depreciation and assessed the asset, determining a recoverable amount of $158,600. Swifty sold the equipment to Voilex Corporation on June 30, 2023, for $156,000. Prepare the necessary entries assuming Swifty has a December 31 year-end.

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December 31 2021 Depreciation expense 190500 11830 15 11947 Journal ... View the full answer