Dear Company purchased four identical machines on January 10, 2016, paying $5,500 for each. The useful life of each machine is expected to be five years, with a salvage value of $700 each. The company uses the straight-line method of depreciation. Selected transactions involving the machines follow. The accounts for recording these transactions are also given.

INSTRUCTIONS

1. Record the transactions in general journal form. Round all calculations to the nearest whole dollar.

ACCOUNTS

101 Cash

141 Machinery

142 Accumulated Depreciation-Machinery

495 Gain on Sale of Machinery

541 Depreciation Expense-Machinery

595 Loss on Sale of Machinery

597 Loss on Stolen Machinery

DATE TRANSACTIONS FOR 2016

Jan. 10 Paid $5,500, in cash, for each of four machines.

Dec. 31 Recorded depreciation for the year on the four machines.

DATE TRANSACTIONS FOR 2017

Apr. 3 Machine 1 was stolen; no insurance was carried.

Dec. 31 Recorded depreciation for the year for the three remaining machines.

DATE TRANSACTIONS FOR 2018

Sept. 18 Sold machine 2 for $3,200 cash.

Dec. 31 Recorded depreciation for the year on the two remaining machines.

DATE TRANSACTIONS FOR 2019

June 4 Machine 3 was traded in for a similar machine (no. 5) with a $6,580 list price and fair market value. A trade-in allowance of $2,510 was received. The balance was paid in cash. The new machine has an estimated life of five years and salvage value of $700.

Aug. 29 Machine 4 was traded in for a similar machine (no. 6) with a $8,200 list price and fair market value. A trade-in allowance of $1,390 was received. The balance was paid in cash. The new machine has an estimated life of five years, with salvage value of $700.

Dec. 31 Record depreciation on the two new machines.

Analyze: What is the balance of the Accumulated Depreciation account on December 31, 2019?