Part B HMIR Question 1 Se vad - 9231979 m2016 Prepare journal entries for the following if the company adjusts its accounts annually: (a) 1 November 20X1. Purchased machinery for $93,600 with a $7,200 residual value and a six year life by paying $14,400 down and the balance with a Note Payable. (Ignore interest) shamba AA (b) 31 December 20X1. Record the adjusting entry for depreciation using the straight line method to the nearest month. IdoITY GOGA (c) 1 July 20X2. (i) The depreciation before the disposal; (ii) Sold the machinery for $81,600 cash; and (iii) Paid off the Note Payable. o pongo bloza 1 Debit Credit S s - Question 2 (a) James Company bought equipment for $460,000 on 22 February 20Y1. The machine had an estimated residual value of $60,000, and had estimated useful life of 10 years, or had an estimated operation output of 100,000 hours. The year-end date of the company is 31 December. Calculate the depreciation on the equipment in these two years using the following methods. 20Y1 2042 (i) Straight-line (using half-year convention) (ii) 200%-declining-balance (using full-year depreciation in the first year) $ (iii) Units-of-output method (hours of operation: 10,000 in 20Y1; 12,000 in 20Y2) S (b) Solar Company purchased equipment for $27,000 on 1 July 20X1. The Company depreciated the equipment over a five-year life by the 150%-declining-balance method on monthly basis and its residual value was $3,000. Until the end of the second year at 31 December 20X2, the Company sold the equipment for $12,500. Assuming the Company adjusts its accounts annually, prepare the necessary journal entries required to update the depreciation for the second year and to dispose the said equipment