2 O'Connor Company ordered a machine on January 1 at a purchase price of $15,000 On the date of delivery, January 2. the company paid $4,000 on the machine and signed a long-term note payable for the balance. On January 3, spad $200 for freight on the machine. On January 5, O'Connor pad cash for installation costs relating to the machine amounting to $900. On December 31 phe end of the accounting period), O'Connor recorded depreciation on the machine using the straight line method with an estimated useful sfe of 10 years and an estimated residual value of $1,000 Required: 1. indicate the effects (accounts, amounts, and for increase, for decrease) of each transaction (on January 1. 2. 3, and 5) on the accounting equation 2. Compute the acquisition cost of the machine 3. Computo the depreciation expense to be reported for the first year 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the tabs below. Foured 1 Required 2 Indicate the effects (accounts, amounts, and + for increase, for decrease] of each transaction (on January 1, 2, 3, and 5) on the accounting equation. Enter any desine minus sign) Da January 1 January 2 January 2 January 3 Jawy 3 Hanuary 5 January 5 Ast 4 Lisbites Required 2 > Showers Eity 11 Do 2 look Rece E9-3 (Algo) Determining Financial Statement Effects of an Asset Depreciation [LO 9-2, LO 9-3) O'Connor Company ordered a machine on January 1 at a purchase price of $15,000. On the date of delivery, January 2, the company paid $4,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $200 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $900. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $1,600. Required: 1. Indicate the effects (accounts, amounts, and for increase. - for decrease) of each transaction (on January 1, 2.3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Compute the acquisition cost of the machine. Acquisition Col 11 2 References E9-3 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Straight-Line Depreciation (LO 9-2, LO 9-3] O'Connor Company ordered a machine on January 1 at a purchase price of $15,000. On the date of delivery, January 2, the company paid $4,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $200 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $900. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $1,600. Required 1. Indicate the effects (accounts, amounts, and for increase, for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Requira 3 Required 4 Compute the depreciation expense to be reported for the first year. (Do not round intermediate calculations.) Depreciation Expense "1 2 points eBook References E9-3 (Algo) Determining Financial Statement Effects of an Depreciation [LO 9-2, LO 9-3] O'Connor Company ordered a machine on January 1 at a purchase price of $15,000. On the date of delivery, January 2, the company paid $4,000 on the machine and signed a long-term note payable for the balance. On January 3, It paid $200 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $900. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $1,600. Required: 1. Indicate the effects (accounts, amounts, and + for increase. - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 31 Required 4 What should be the book value of the machine at the end of the second year? (Do not round intermediate calculations.) Book Value