1.

Descriptions: Cash, machinary, accumulated depreciation, depreciation expense, gain on sale of machinary, lose on sale of machinary

2.

Recording Asset Acquisition, Depreciation, and Disposal On January 2. 2016. Verdi Company acquired a machine for $75.000. In addition to the purchase price. Verdi spent $2.100 for shipping and installation, and $2.600 to calibrate the machine prior to use. The company estimates that the machlne has a useful lfe of 5 years and a residual value of $11,000. Required a. Prepare journal entries to record the acquisition costs Description Debit Credit 1/2/2016 b. Calculate the annual depreciation expense using straight-line depreciation and prepare a ournal entry to record deprecia on expense or 20 Description Debit Credit 12/31/2016 c. On December 31. 2019, Verdi sold the machine to another company for $14.000. Prepare the necessary journal entry to record the sale. Description Credit Cash Accumuleted depreciation