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Pratham Company purchased and installed a machine on February 1, 2017, at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption
Pratham Company purchased and installed a machine on February 1, 2017, at a total cost of $72,000. Straight-line depreciation was calculated based on the assumption of a five-year life and no residual value. The machine was disposed of on July 31, 2020. Assuming the machine was sold for $22,000, prepare the general journal entry to record the disposal. (3 marks) b) Harsheeta Co. purchased a computer on January 1, 2018, for $1,600,000. The straight-line method of depreciation was used, based on an expected life of 6 years and a residual value of $130,000. Prepare the journal entries to record depreciation for the first 6 months of 2020 and the sale of the computer on July 1, 2020, for $1,000,000
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