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On January 1, 2021, Pina Colada Company purchased on credit machinery costing $159,000 and incurred $5,400 in installation costs. The machinery has an estimated useful
On January 1, 2021, Pina Colada Company purchased on credit machinery costing $159,000 and incurred $5,400 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $10,530. The company uses the straight-line method of depreciation. At the end of 2022, Pina Colada recorded depreciation and assessed the asset, determining a recoverable amount of $132,600. Pina Colada sold the equipment to Voilex Corporation on June 30,2023 , for $130,400. Prepare the necessary entries assuming Pina Colada 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 loss on impairment) (To record depreciation expense) (To record disposal of machinery)
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