A machine was purchased on 2nd July 2016 for $1,200,000. It was traded in for new one

Fantastic news! We've Found the answer you've been seeking!

Question:

A machine was purchased on 2nd July 2016 for $1,200,000. It was traded in for new one whose price was $1,000,000 on 2nd June 2020 and the company paid $300,000 for this exchange. The policy of the company is to charge depreciation for its PP&E at 10% on cost per annum. Depreciation is charged in full during the year of purchase, but no depreciation is charged in the year of disposal.

Required:

Prepare the following accounts for the year ended 31^st December 2020:

- Machinery account
- Accumulated depreciation account
- Machinery disposal a/c

Posted Date: Oct 07, 2021 03:17 AM

See More Questions

On January 1, 2010, a machine was purchased for $90,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before...
On January 1, 2008, a machine was purchased for $900,000 by Tom Young Co. The machine is expected to have an 8-year life with no salvage value . It is to be depreciated on a straight-line basis. The...
On May 1, 2011, a machine was purchased for $1,750,000 by Pomeroy Corp. The machine is expected to have an eight-year life with no salvage value and is to be depreciated on a straight-line basis. The...
March 31, 2014, adjusted trial balance for Brenner Climbing Adventures has been alphabetized as follows: Required Journalize the closing entries. No. Account Debit Credit $ 2,600 168 Accumulated...
Which party claims last clear chance?
The soldering iron tip in Problem 1.50 becomes oxidized with age and its gray-body emittance increases to 0.8. Assuming that the surroundings are at 20?C determine the power requirement for the...
Imagine that you take a metal spring, compress it to its most compact length, and tie some string around it to keep it compressed. There is now potential energy stored in the compressed spring. You...
The following items were taken from the financial statements of Sexton Company. (All dollars are in thousands.) Instructions Prepare a classified balance sheet in good form as of December 31,2014....
12345 1 2 3 4 5 6 7 8 819 9 10 Define production system and explain types of productions system? Distinguish between product layout and process layout? Explain the principles of good plant layout?...
1. In each situation, what are the main financial planning issues that need to be addressed? 2. What additional information would you like to have before recommending actions in each situation? 3....
If the price in dollars of a stereo system is given by p(q)=(3600)/(q^(2))+1500, where q represents the demand for the product, find the marginal revenue when the demand is 30 .
The probability is .1 that a customer entering a food store will buy a can of coffee. If 1,000 customers enter the store, what is the minimum number of cans of coffee the store must have on hand to...
Suppose 15 % of the parts produced by a machine are defective. Use a normal approximation to the binomial distribution. What is the probability that a sample of 50 parts contains: (a) Five or more...
A gas station finds that the mean number of people buying gas in any 30-min period is 16. Use the Poisson distribution to compute the probability that between 25 and 35 people, inclusive, will buy...
A company has a mean earnings per share (EPS) of $3.25 with a standard deviation of $1.21. Assume that the earnings are normally distributed. Compute the probability that EPS will be: (a) Between...
An investment analyst is following the stock of High Flyer Company. She believes that in any month, the stock has a 65 % chance of going up and a 35 % chance of going down. Using the binomial...
A very fine-grained metal may have a mean grain intercept of the order of 1 micron or 10^-6 m. Assuming the grain-boundary energy of the metal is 0.8 J/m^2, what would be the appropriate value of its...
In the busy port of Chennai, India, the number of containers loaded onto ships during a 15-week period is as follows: 1. Develop a linear trend equation to forecast container loadings. 2. Using the...
Given the four criteria necessary for a sale to be complete, which of the following is not one of those conditions? 1. Delivery has occurred or services rendered. 2. Cash has been collected. 3. The...
What is the difference between a business and a pure charity? Between a business and a governmental agency?
What is an integrated delivery system?

A machine was purchased on 2nd July 2016 for $1,200,000. It was traded in for new one

Question:

Expert Answer:

Machine ac Debit Credit New machine 1000000 Machine ol... View the full answer

Students also viewed these accounting questions