Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service, the copier produced 180,000 copies, in the second year 250,000 copies, and in the third year, it had produced 175,000. The company decided to sell the machine for $6,500 in the third year.

Required:

1) Record the purchase and the three years of depreciation.

2) Record the subsequent gain or loss on the disposal of the machine.

Answer rating: 100% (QA)

Journal entry to record the purchase and first year depreciation on December31 Date ... View the full answer