On December 31, 2015, Bridgeport Co. shows the following account for machinery it had assembled for its own use during 2015:

An analysis of the details in the account disclosed the following:
(a) The old machine, which was removed before the installation of the new one, had been fully depreciated.
(b) Cash discounts received on the payments for materials used in construction totaled $4,500, and these were reported in the purchase discounts account.
(c) The factory overhead account shows a balance of $351,000 for the year ended December 31, 2015; this balance exceeds normal overhead on regular plant activities by approximately $22,700 and is attributable to machine construction.
(d) A profit was recognized on construction for the difference between costs incurred and the price at which the machine could have been purchased.
Instructions:
1. Determine the machinery and machine tools balances as of December 31, 2015.
2. Give individual journal entries necessary to correct the accounts as of December 31, 2015, assuming that the nominal accounts are still open.

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Balance Item Cost of dismantling old machine Cash proceeds from sale of old machine Raw materials used in construction of new machine Labor in construction of new machine Cost of installation Materials spoiled in machine trial runs Profit on construction Purchase of machine tools Debit Credit DebitCredit 18,760 83,400 55,000 13,600 3,100 22,500 15,200 18,760 13,9004,860 88,260 143,260 156,860 159,960 182,460 197,660