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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.)

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