Question
Q12) On December 31, 2020, Bridgeport Inc. has a machine with a book value of $977,600. The original cost and related accumulated depreciation at this
Q12) On December 31, 2020, Bridgeport Inc. has a machine with a book value of $977,600. The original cost and related accumulated depreciation at this date are as follows.
Machine | $1,352,000 | |
Less: Accumulated depreciation | 374,400 | |
Book value | $977,600 |
Depreciation is computed at $62,400 per year on a straight-line basis. Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
(b)
On April 1, 2021, Bridgeport sold the machine for $1,081,600 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
April 1, 2021 | enter an account title to record current depreciation | enter a debit amount | enter a credit amount |
enter an account title to record current depreciation | enter a debit amount | enter a credit amount | |
(To record current depreciation.) | |||
April 1, 2021 | enter an account title to record sale of the machine | enter a debit amount | enter a credit amount |
enter an account title to record sale of the machine | enter a debit amount | enter a credit amount | |
enter an account title to record sale of the machine | enter a debit amount | enter a credit amount | |
enter an account title to record sale of the machine | enter a debit amount | enter a credit amount | |
(To record sale of the machine.) |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started