Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 2 (6 marks) Prepare general journal entries to record the following events: (Show your calculations) Apr 1, 2019 Purchased a machine for $80,000 cash.

image text in transcribed

QUESTION 2 (6 marks) Prepare general journal entries to record the following events: (Show your calculations) Apr 1, 2019 Purchased a machine for $80,000 cash. The machine had a salvage value of $15,000 and an estimated life of 10 years. Dec 31, 2019 Recorded depreciation expense for the year. Jan 1, 2020 Added a computer control device to the machine for a cost of $5,400. The control improved the quality of the machine's operation, extended its service life for 2 years beyond the original estimate, and will provide a revised salvage value of $6,000 at the end of the machine's life. Jul 1, 2020 The machine was cleaned, inspected and two worn parts were replaced at a cost of $1,500. No estimates of life or salvage value changed because of this routine maintenance. Dec 31, 2020 Depreciation expense was recorded for the year. Record your entries and calculations below: Date Account Title and Explanation Debit Credit PR

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting What The Numbers Mean

Authors: David Marshall, Wayne William McManus, Daniel Viele

7th Edition

0073011215, 9780073011219

More Books

Students also viewed these Accounting questions

Question

What do you like most about the organization?

Answered: 1 week ago