Question
Prepare the journal entries for the following transactions: January1-Purchased a new machine for $60,000cash. The machine had a useful life of5years and a salvage value
Prepare the journal entries for the following transactions:
January 1- Purchased a new machine for $60,000 cash. The machine had a useful life of 5 years and a salvage value of $10,000.
May 1- Borrowed $80,000 cash from the bank with annual interest rate of 4%. The loan is due April 30th of the following year.
December 31 – Record the depreciation expense using the straight-line method.
December 31 – Record any interest expense for the year, if any.
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College Accounting Chapters 1-30
Authors: John Price, M. David Haddock, Michael Farina
15th edition
1259994975, 125999497X, 1259631117, 978-1259631115
