PA9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9. 2, LO 9-3) At the beginning of the year, Grillo Industries bought three used machines from Freeman incorporated. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Machine $9,200 900 700 700 Machine $38,400 2.300 1,900 800 Machine C $22,200 1,400 2,400 900 By the end of the first year, each machine had been operating 8,000 hours. Required: 1. Compute the cost of each machine 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Machine Estimates Life Residual Value 5 years $1,200 20,000 hours 1,600 10 years 1,600 Depreciation Method Straight-line Units-of-production Double-declining-balance Complete this question by entering your answers in the tabs below. 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Machine Estimates Life Residual Value 5 years $1,200 20,000 hours 1,600 10 years 1,600 Depreciation Method Straight-line Units-of-production Double-declining-balance Complete this question by entering your answers in the tabs below. Required i Required 2 Compute the cost of each machine. Cost of Machine Machine A Machine B Machine C Required Required 2 > Required 1 Required 2 Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required fo transaction/event, select "No Journal Entry Required in the first account field. Do not round intermediate calculations.) View transaction list Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1. Note: Enter debits before credits. Transaction General Journal Debit Credit Ly Company disposed of two different assets. On January 1, prior to their disposal, the accounts reflected the following: Help Save & Exit Submit Asset Machine A Machine B Original Cost $34,000 70,200 Residual Value $4,100 4,400 Estimated Life 5 years Accumulated Depreciation (straight-line) $23,920 (4 years) 51,700 (11 years) The machines were disposed of in the following ways: a. Machine A: Sold on January 1 for $10.400 cash. b. Machine B: On January 1, this machine was sold to a salvage company at zero proceeds (and zero cost of removal) Required: 1. & 2. Prepare the journal entries related to the disposal of Machine A and B at the beginning of the current year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the current year depreciation for Machine A prior to disposal