Please attempt all parts
At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different from each other, each was recorded separately in the accounts. Machine B achine C Machine A $10,000 1,600 $31,500 2,100 1,400 $22,000 Cost of the asset Installation costs Renovation costs prior to use Repairs after production began 800 600 1,600 500 400 700 By the end of the first year, each machine had been operating 7,000 hours. Required: 1-a. Compute the cost of each machine. Machine Total A Total cost 0 1-b. Which of the following should be capitalized? (Select all that apply.) Renovation costs Installation costs Purchase costs Repair cost Depreciation costs 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Estimates Residual Life achine Depreciation Method Value Straight-line Units-of-production Double-declining-balance $1,000 4 years 33,000 hours 5 years 2,000 1,400 Journal entry worksheet Record the entry for depreciation expense at the end of year 1 Note: Enter debits before credits. General Journal Transaction Debit Credit 1 Record entry View general journal Clear entry During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal of the assets, the accounts reflected the following: Accumulated Depreciation (straight-line) $17,600 (4 years) 48,000 (12 years) Original Residual Estimated Life Value Cost Asset $2,000 3,200 achine A $24,000 59,200 5 years 14 years Machine B The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1, 2017, for $5,750 cash b. Machine B: On January 1, 2017, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of 2017. Transaction "a" relates to the recording of the 2017 depreciation and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A - Jan. 1, 2017: Journal entry worksheet 2 Record the depreciation expense in 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit . Record entry View general journal Clear entry A Journal entry worksheet 1 Record the entry for disposal of Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry View general journal Clear entry Machine B - January 1, 2017: View transaction list Journal entry worksheet 1 2 Record the depreciation expense in 2017 Note: Enter debits before credits. Transaction General Journal Debit Credit . Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the entry for disposal of Machine B. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry View general journal Clear entry At the beginning of the year, CCZ Corporation bought three used machines from Pequita Compression Incorporated. The machines immediately were overhauled, installed, and started operating. Because the machines were different from each other, each was recorded separately in the accounts. Machine B achine C Machine A $10,000 1,600 $31,500 2,100 1,400 $22,000 Cost of the asset Installation costs Renovation costs prior to use Repairs after production began 800 600 1,600 500 400 700 By the end of the first year, each machine had been operating 7,000 hours. Required: 1-a. Compute the cost of each machine. Machine Total A Total cost 0 1-b. Which of the following should be capitalized? (Select all that apply.) Renovation costs Installation costs Purchase costs Repair cost Depreciation costs 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Estimates Residual Life achine Depreciation Method Value Straight-line Units-of-production Double-declining-balance $1,000 4 years 33,000 hours 5 years 2,000 1,400 Journal entry worksheet Record the entry for depreciation expense at the end of year 1 Note: Enter debits before credits. General Journal Transaction Debit Credit 1 Record entry View general journal Clear entry During 2017, Ly Company disposed of two different assets. On January 1, 2017, prior to disposal of the assets, the accounts reflected the following: Accumulated Depreciation (straight-line) $17,600 (4 years) 48,000 (12 years) Original Residual Estimated Life Value Cost Asset $2,000 3,200 achine A $24,000 59,200 5 years 14 years Machine B The machines were disposed of in the following ways: a. Machine A: This machine was sold on January 1, 2017, for $5,750 cash b. Machine B: On January 1, 2017, this machine suffered irreparable damage from an accident and was removed immediately by a salvage company at no cost Required: 1. Prepare the journal entries related to the disposal of each machine at the beginning of 2017. Transaction "a" relates to the recording of the 2017 depreciation and transaction "b" relates to the recording of the disposal of the machine. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Machine A - Jan. 1, 2017: Journal entry worksheet 2 Record the depreciation expense in 2017. Note: Enter debits before credits. Transaction General Journal Debit Credit . Record entry View general journal Clear entry A Journal entry worksheet 1 Record the entry for disposal of Machine A. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry View general journal Clear entry Machine B - January 1, 2017: View transaction list Journal entry worksheet 1 2 Record the depreciation expense in 2017 Note: Enter debits before credits. Transaction General Journal Debit Credit . Record entry Clear entry View general journal Journal entry worksheet 1 2 Record the entry for disposal of Machine B. Note: Enter debits before credits. Transaction General Journal Debit Credit b. Record entry View general journal Clear entry
