Question
On January 1, 2021, Blue Spruce Company purchased on credit machinery costing $196,500 and incurred $6,750 in installation costs. The machinery has an estimated useful
On January 1, 2021, Blue Spruce Company purchased on credit machinery costing $196,500 and incurred $6,750 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $12,090. The company uses the straight-line method of depreciation. At the end of 2022, Blue Spruce recorded depreciation and assessed the asset, determining a recoverable amount of $163,800. Blue Spruce sold the equipment to Voilex Corporation on June 30, 2023, for $161.100.
Prepare the necessary entries assuming Blue Spruce has a December 31 year-end. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Round answers to 0 decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)
(To record depreciation expense) (To record depreciation expense)
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