paid $11,000 on the m and signed a on the 31 (the useful life of 10 years and an e - for decrease) of each transaction (on January 1, 2, 3, and 5) on the the 4. What s Jan 02 Jan 03 9 Homework O'Connor Company ordered a machine on January 1 at a purchase price of $45,000. On the date of delivery, January 2, the company paid $11,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $500 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $2,700. On mber 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,800 Required: 1. Indicate the effects (accounts, amounts, and+ for increase, - for decrease) of each transaction (on January 1, 2,3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the tabs below. Compute the Required 3 > mework Help O'Connor Company ordered a machine on January 1 at a purchase price of $45,000. On the date of delivery, January 2, the company paid $11,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $500 for freight on the machine. On January 5, O'Connor paid cash for installation costs relating to the machine amounting to $2,700. On December 31 (the end of the accounting period), O'Connor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,800 Required: 1. Indicate the effects (accounts, amounts, and + for increase-for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? Complete this question by entering your answers in the tabs below. expense to be reported for the frst year. (0o not round Intermeciate calculations.) Compute the d er 9 Homework Helg O'Connor Company ordered a machine on January 1 at a purchase price of $45,000. On the date of delivery, January 2, the company paid $11,000 on the machine and signed a long-term note payable for the balance. On January 3, it paid $500 for freight on the machine. On January 5,O'Connor paid cash for installation costs relating to the machine amounting to $2,700. On December 31 (the end of the accounting period OConnor recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4,800. Required: 1. Indicate the effects (accounts, amounts, and + for increase, - for decrease) of each transaction (on January 1, 2, 3, and 5) on the accounting equation. 2. Compute the acquisition cost of the machine. 3. Compute the depreciation expense to be reported for the first year. 4. What should be the book value of the machine at the end of the second year? ook Complete this question by entering your answers in the tabs below. What should be the book value of the machine at the end of the second year? (Do not round intermediate calculations.)
