Instructions On January 1, Wilcox Company acquires, for cash, four machines that have the following characteristics: Estimated Residual Service Machine Cost Value Life A $26,000 $2,000 6 years B 19,000 1,000 9 years 30,000 5,000 5 years D 28,000 7 years Required: 1. Prepare journal entries to record the acquisition and the first year's depreciation expense, assuming that the composite method is used on a straight-line basis. 2. If the company sells Machine B after 4 years for $10,000, prepare the journal entry. 3. Next Level What arguments may be used to support the composite depreciation method? Wilcox Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 121 Accounts Receivable 141 Inventory EXPENSES 152 Prepaid Insurance 500 Cost of Goods Sold 184 Machinery 511 Insurance Expense 198 Accumulated Depreciation: Machine 512 Utilities Expense 521 Salaries Expense LIABILITIES 531 Depreciation Expense 211 Accounts Payable 532 Bad Debt Expense 231 Salaries Payable 540 Interest Expense 250 Unearned Revenue 559 Miscellaneous Expenses 261 Income Taxes Payable EQUITY 311 Common Stock 331 Retained Earnings 2. Prepare the journal entry on December 31, if the company sells Machine B after 4 years for $10,000. General Journal Instructions How does grading work? PAGE 10 GENERAL JOURNAL Score: 27/37 DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT 1 Machinery 19,000.00 2 Accumulated Depreciation: Machine 1,500.00 3 Cash 100,000.00