Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On Jandary 1, 2022, Swifty Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine

image text in transcribed
image text in transcribed
image text in transcribed
On Jandary 1, 2022, Swifty Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $53,500. Related expenditures also paid in cash included: sales tax $2,600. shipping costs $100, insurance during shipping $120, installation and festing costs $80, and $150 of oil and lubricants to be used with the machinery during its first year of operations. Swiftyestimates that the useful fife of the machine is 5 years with a 54,200 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is wed, Machine B: The recorded cost of this machine was $180000. Swifty estimates that the useful life of the machine is 4 years with a $10,000 salvage value remainingat the end of that time periodi (a) Your answer is correct Prepare the following for Machine A Round anwwers to 0 decimal places, es. 5.125, Lht al debit entries before credit entries. Credit: occount bites are dutomatically indented wher amount is entered, Do not indent manuollk if no entry is required, select "No Entry" for the occount titier and enter 0 for the amounts) 1. The journal entry to record its purchase on January 1, 2022. 2. The journal entry to record annual depreciation at December 31,2022. Using multiple attempts will impact yout score Attempts: 1 of 2 used 15 S score reductionafter attempt 1 (b) Calculate the amount of depreciation exense that Swifty thould record for Machine B eachiyear of its useful life under the following assumptions, (Round depreciotion cost per unit to 2 declmal ploces eg. 12.25. Round final answers to 0 dedimol places, eg. 2.125 (1) Switty uses thie straight-line tnethod of depreciation (2) Swifty uses the declining balance method the rate used is twice the strolght-line rate. (3) Swifyy uses the unts of actwity unethod and estimates that the useful sfe of the machine is 141.S00 units. Actual usake is as follows: 2022, 50.000 units: 2023. 40,150 units; 2024,30,300 units: 2025.21 .050 units (2) Swifty uses the declining-balance method. The rate used is twice the straight-line rate. (3) Swifty uses the units of activity method and estimates that the useful life of the machine is 141.500 units. Actual usage is as follows: 2022,50,000 units: 2023,40,150 units: 2024,30,300 units; 2025,21,050 units. eTextbook and Media List of Accounts Attempts: 0 of 2 used Uent rebtiple attenots wili ingact yout score. 15) score tedotaion after atcempt 1 (c) The parts of thio guection mint be congeted in orden. Thab pait wil be walable when you cornulete the part above

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

Management Accounting For Business

Authors: Colin Drury, Mike Tayles

8th Edition

1473778808, 978-1473778801

More Books

Students also viewed these Accounting questions

Question

Investment in Suaro

Answered: 1 week ago

Question

Describe contextual influences on direct financial compensation.

Answered: 1 week ago

Question

Describe legally required benefits.

Answered: 1 week ago

Question

Discuss career development and career development methods.

Answered: 1 week ago