Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On December 31, 2025, Bonita Inc. has a machine with a book value of $1.109,200. The original cost and related accumulated depreciation at this

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

On December 31, 2025, Bonita Inc. has a machine with a book value of $1.109,200. The original cost and related accumulated depreciation at this date are as follows Machine $1,534,000 Less: Accumulated depreciation 424,800 Book value $1.109.200 Depreciation is computed at $70,800 per year on a straight-line basis Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal, A fire completely destroys the machine on August 31, 2026. An insurance settlement of $507.400 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries) Date Aug 31,2026 Account Titles and Explanation (To record current depreciation.) Aug 31, 2026 (To record loss of the machine) Debit Credit (b) On April 1, 2026, Bonita sold the machine for $1,227,200 to Yoakam Company (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter O for the amounts. List all debit entries before credit entries.) Date Apr. 1. 2026 Account Titles and Explanation Debit Credit Apr. 1, 2026 (To record current depreciation) [To record sale of the machine.) (c) On July 31, 2026, the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1,298,000. (Credit account titles are automatically indented when amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries) Date July 31, 2026 Account Titles and Explanation (To record current depreciation) July 31, 2026 (To record donation of the machine) Debit Credit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: LibbyShort

7th Edition

78111021, 978-0078111020

More Books

Students also viewed these Accounting questions

Question

1 Explain the concept of noise in questionnaire design.

Answered: 1 week ago