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Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service the
Jonas Company purchased a photocopier that cost $15,000. The copier was expected to last for 1.25 million copies. In the first year of service the copier produced 180,000 copies, in the second year 250,000 copies and in the third year it had produced 175,000 copies. The company decided to sell the machine for $6,500 in the third year. Required: 1. Record the purchase and the three years of depreciation. 2. Record the subsequent gain or loss on the disposal of the machine. Record the purchase and the first year of depreciation on December 31. DATE Dec. 31 Copier Cash Depreciation Expense Copier GENERAL JOURNAL ACCOUNT TITLE PAGE POST. REF. DEBIT CREDI 15,000.00 15,0 2,160.00 2,1 Record the second year of depreciation on December 31. GENERAL JOURNAL DATE ACCOUNT TITLE 1 Dec. 31 Depreciation Expense 2 Copier PA POST. REF. DEBIT CRE 2,568.00 Record the third year of depreciation on December 31. 1 2 DATE Dec. 31 Depreciation Expense Copier GENERAL JOURNAL ACCOUNT TITLE PAGE POST. REF. DEBIT CREDI 1,438.08 1,4 2. Record the subsequent gain or loss on the disposal of the machine on December 31. General Journal Instructions DATE 1 Dec. 31 Cash 2 3 GENERAL JOURNAL ACCOUNT TITLE Loss on Disposal of Property, Plant, and Equipment Depreciation Expense Conior POST. REF. DEBIT 15,000.00 6,500.00 P CR 1
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