SELECTIONS FOR ALL ARE: CASH, MACHINERY, ACCUMULATED DEPRECIATION, DEPRECIATION EXPENSE, GAIN ON SALE OF MACHINERY, LOSS ON SALE OF MACHINERY

Recording Asset Acquisition, Depreciation, and Disposal On January 2, 2019, Verdi Company acquired a machine for $85,000. In addition to the purchase price, Verdi spent $2,000 for shipping and installation, and $2,500 to calibrate the machine prior to use. The company estimates that the machine has a useful life of five years and a residual value of $7,000. Required a. Prepare journal entries to record the acquisition costs. Debit Credit Description b. Calculate the annual depreciation expense using straight-line depreciation and prepare a journal entry to record depreciation expense for 2019. Description Debit Credit nber 31, 2022, Verdi sold the machine to another company for $12,000. Prepare the necessary journal entry to record c. Or sale. Debit Credit Description Cash Accumulated depreciation