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5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready to run on January 1, 2015. The following costs

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5) Mandy Manufacturing purchased a machine on August 1, 2014, and it was installed and ready to run on January 1, 2015. The following costs were incurred in the purchase and installation of the machine. Invoice price $ 1,300,000 Freight costs 7.000 Purchase discount 2.500 Installation costs 66,000 Electrical and power connections 32,000 Repairs to correct damage incurred during uncrating 12.000 Adjustment costs 36,000 Spare parts for future use 25,000 Provincial sales tas 91.000 Fines incurred during the transport and unloading of the machine 500 Cost of special foundation for the machine 6,500 Calculate the depreciable cost of the machine. 6) Honest Computers sells computers with a 6-month warranty. In January, the company sold 35,000 computers at $2,600 each and 1,500 computers were returned for repairs. The total repair costs amounted to $185,000. It is estimated that 3% of all units sold will need repairs under warranty at an estimated cost of $300 per unit. Prepare the journal entry to record warranty expense for January. 7) Xeno Co. incurred the following transactions concerning its machinery: 8-Jan-14 Purchased a machine for $55,000 cash, and also paid $3,000 cash to have it installed. Estimated useful life is 10 years and residual value is $5,000. Straight line depreciation is used. 1-Jan-15 The machine's useful life was changed from 10 years to 9. 5-Jan-15 General maintenance on the machine was completed for $800. 1-Jan-16 Paid $3,800 to replace a motor in the machine. This was considered a major overhaul, but it did not alter the machine's useful life Xeno Co uses the calendar year as its fiscal year. Prepare the journal entry to record depreciation expense for 2014. Prepare the journal entry to record depreciation expense for 2015. Prepare the journal entry to record depreciation expense for 2016. Round all values to the nearest dollar

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