Question
On January 1, 20X1, Alpha Corporation purchased machinery for $100,000 cash. The machinery has a useful life of 10 years and a residual value of
On January 1, 20X1, Alpha Corporation purchased machinery for $100,000 cash. The machinery has a useful life of 10 years and a residual value of $10,000. Calculate the depreciation expense for the year 20X1 using the straight-line method.
Additionally, Alpha Corporation made the following transactions during 20X1:
- March 1: Paid $5,000 for machinery repairs.
- June 1: Purchased additional machinery parts for $8,000.
- September 1: Paid $3,000 for machinery maintenance services.
Required:
- Calculate the total depreciation expense for the year 20X1.
- Prepare journal entries for the machinery-related transactions.
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Managerial Accounting The Cornerstone of Business Decision Making
Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
7th edition
978-1337116008, 1337116009, 1337115770, 978-1337516150, 1337516155, 978-1337115773
