York Instruments completed the following transactions and events involving its machinery. 2017 Jan. 1 Paid $107,800 cash
Question:
York Instruments completed the following transactions and events involving its machinery.
2017
Jan. 1 Paid $107,800 cash plus $6,470 in sales tax for a new machine. The machine is estimated to have a six-year life and a $9,720 salvage value.
Dec. 31 Recorded annual straight-line depreciation on the machinery.
2018
Dec. 31 Due to new information obtained earlier in the year, the machine’s estimated useful life was changed from six to four years, and the estimated salvage value was increased to $14,345. Recorded annual straight-line depreciation on the machinery.
2019
Dec. 31 Recorded annual straight-line depreciation on the machinery.
31 Sold the machine for $25,240 cash.
Required
Prepare journal entries to record these transactions and events.
Salvage ValueSalvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...
Step by Step Answer:
2017 Jan1 Machinery 114270 Cash 114270 Record costs of machinery 107800 6470 Dec31 Depreciation Expe...View the full answer
Financial Accounting Information for Decisions
ISBN: 978-1259917042
9th edition
Authors: John J. Wild
