Vita Water purchased a used machine for $120,500 on January 2, 2020. It was repaired the next day at a cost of $8,288 and installed on a new platform that cost $1,612. The company predicted that the machine would be used for six years and would then have a $23,120 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year’s depreciation was recorded on December 31, 2020. On September 30, 2025, it was retired.

Required:
1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.

Answer rating: 100% (QA)

Date count debit credit 2 jan Machine 120500 2020 Cash 120500 Purchase ... View the full answer