On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in...

 

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On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11.960. The company uses the straight-line method of depreciation. At the end of 2022, Ayayai recorded depreciation and assessed the asset, determining a recoverable amount of $161,200. Ayayai sold the equipment to Voilex Corporation on June 30, 2023, for $158,600. Prepare the necessary entries assuming Ayayai has a December 31 year-end. (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. Round answers to O decimal places, eg 5,275. Record journal entries in the order presented in the problem) On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11.960. The company uses the straight-line method of depreciation. At the end of 2022, Ayayai recorded depreciation and assessed the asset, determining a recoverable amount of $161,200. Ayayai sold the equipment to Voilex Corporation on June 30, 2023, for $158,600. Prepare the necessary entries assuming Ayayai has a December 31 year-end. (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. Round answers to O decimal places, eg 5,275. Record journal entries in the order presented in the problem)

Answer rating: 100% (QA)

Journal entries Date Account Title Debit Credit Jan 1 2021 Machinery 200105 Accounts Payable 200105 ... View the full answer