On March 20, 2020. FineTouch Corporation purchased two machines at auction for a combined total cost of $222,000. The machines were listed in the auction catalogue at $110,000 for machine Xand $155,000 for machine Y. Immediately after the auction, FineTouch had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $111,780 on machine X and $131,220 on machine Y. On March 24, Fine Touch paid a total of $5,000 in transportation and installation charges for the two machines. No further expenditures were made for machine X, but $5,300 was paid on March 29 for improvements to machine Y On March 31, 2020, both machines were ready to be used. The company expects machine X to last five years and to have a residual value of $3,300 when it is removed from service, and it expects machine Y to be useful for eight more years and have a residual value of $14,600 at that time. Due to the different characteristics of the two machines, different depreciation methods will be used for them: machine will be depreciated using the double-diminishing-balance method and machina Y using the straight-line method. Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round percentage to 1 decimal place, for eg 40.1 and Round answers to the nearest whole dollar, eg: 5.275. If no entry is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 20 Machineryx Machinery e Textbook and Media List of Accounts Prepare the journal entries to record the transportation, installation, and improvement costs for sach machine. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round percentage to 1 decimal place fores. 40.1 and Round answers to the nearest whole dollar, eg: 5.275. If no entry is required select "No Entry for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit Mar. 24 Machinery Machinery Y Cash Mar 29 Machinery Cash e Textbook and Media List of Accounts Prepare the journal entry to record the depreciation expense to December 31, 2020, for each machine. (Credit account tities are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, eg: 5.275. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit Dec 31 Depreciation Expense Machinery - Depredaton Expande-Machinery Y Accumulated Depreciation - Machinery Accumulated Depreciation Machinery e Textbook and Media List of Accounts
