On December 31, 2022, Skysong Inc. owns a machine with a carrying amount of $824,000. The...

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On December 31, 2022, Skysong Inc. owns a machine with a carrying amount of $824,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine $1,400,000 Accumulated depreciation 576,000 $824,000 Depreciation is calculated at $96,000 per year on a straight-line basis. A set of independent situations follows. For each situation, prepare the journal entry for Skysong to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Skysong uses IFRS for financial statement purposes. (a) A fire completely destroyed the machine on August 31, 2023. An insurance settlement of $420,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) On December 31, 2022, Skysong Inc. owns a machine with a carrying amount of $824,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine $1,400,000 Accumulated depreciation 576,000 $824,000 Depreciation is calculated at $96,000 per year on a straight-line basis. A set of independent situations follows. For each situation, prepare the journal entry for Skysong to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Skysong uses IFRS for financial statement purposes. (a) A fire completely destroyed the machine on August 31, 2023. An insurance settlement of $420,000 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries)

Answer rating: 100% (QA)

To record the transaction for the fire that destroyed the machine on August 31 2023 and the i... View the full answer