Question 2:

Grand Company purchased the following machine on January 01, 2017, for use in its production process: Machine The cash price of the machine was BDT 48,000. Related expenditures included: sales tax BDT 1,700, shipping costs BDT 150, Insurance during shipping BDT 80, installation and testing cost BDT 70 and BDT 100 of oil and lubcricants to be used with the machinery during its first year of operations. Grand estimates that the useful life of the machine is 5 years with a BDT 5,000 salvage value. Assueme straight-line method of deprecation is used.

instructions: Preapre the following:

1) The journal entry to record its purchase on January 01, 2017

2) The journal entry to record annual depreciation at December 31, 2017.