At the end of the prior year ending on December 31, Year 1, O'Connor Company's records...

 

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At the end of the prior year ending on December 31, Year 1, O'Connor Company's records reflected the following for Machine A: Cost when acquired Accumulated depreciation At the beginning of January of the current year, the machine was renovated at a cost of $13,100. As a result, the estimated life increased from five years to eight years, and the residual value increased from $3,700 to $5,700. The company uses straight-line depreciation. Required: 1. Prepare the journal entry to record the renovation. 2. How old was the machine at the end of the prior year? 3. Give the adjusting entry at the end of the current year to record straight-line depreciation for the year. Complete this question by entering your answers in the tabs below. Required 1 Prepare the journal entry to record the renovation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet < 1 Record the cost of renovation for the machine. Note: Enter debits before credits. Date January 01 $ 25,200 8,600 Required 2 How old was the machine at the end of the prior year? Age of machine 1 General Journal Required 3 Journal entry worksheet years Note: Enter debits before credits. Date December 31 Give the adjusting entry at the end of the current year to record straight-line depreciation for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Record the straight-line depreciation for the machinery on December 31st (year 3). General Journal Credit Debit > Credit At the end of the prior year ending on December 31, Year 1, O'Connor Company's records reflected the following for Machine A: Cost when acquired Accumulated depreciation At the beginning of January of the current year, the machine was renovated at a cost of $13,100. As a result, the estimated life increased from five years to eight years, and the residual value increased from $3,700 to $5,700. The company uses straight-line depreciation. Required: 1. Prepare the journal entry to record the renovation. 2. How old was the machine at the end of the prior year? 3. Give the adjusting entry at the end of the current year to record straight-line depreciation for the year. Complete this question by entering your answers in the tabs below. Required 1 Prepare the journal entry to record the renovation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet < 1 Record the cost of renovation for the machine. Note: Enter debits before credits. Date January 01 $ 25,200 8,600 Required 2 How old was the machine at the end of the prior year? Age of machine 1 General Journal Required 3 Journal entry worksheet years Note: Enter debits before credits. Date December 31 Give the adjusting entry at the end of the current year to record straight-line depreciation for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Debit Record the straight-line depreciation for the machinery on December 31st (year 3). General Journal Credit Debit > Credit

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