Question
SolMfg Company purchased a new machine for $400,000 on September 1, 2020 . It is estimated that the machine will have $40,000 residual value at
SolMfg Company purchased a new machine for $400,000 on September 1, 2020. It is estimated that the machine will have $40,000 residual value at the end of its 5-year useful service life.
Please prepare a depreciation schedule which shows the annual depreciation expense on the machine for its 5-year life.
Instructions
- Company is using straight line depreciation method;
Year | Depreciable amount |
Rate | Annual Depreciation expense | Accumulated Depreciation | Book Value End of Year |
| ||||
2020 |
|
| ||||||||
2021 |
|
| ||||||||
2022 |
|
| ||||||||
2023 |
|
| ||||||||
2024 |
|
| ||||||||
2025 |
|
| ||||||||
- Please prepare a journal entry on December 31, 2020 to record 2020 depreciation
- The Company sold the machine on June 30,2023 for $260,000 cash. Please prepare journal entries on June 30,2023.
- Please prepare the depreciation schedule below if the Company is using double declining method
Year | Book Value Beginning of Year |
Rate | Annual Depreciation expense | Accumulated Depreciation | Book Value End of Year |
2020 |
|
| |||
2021 |
|
| |||
2022 |
|
| |||
2023 |
|
| |||
2024 |
|
| |||
2025 |
|
|
- The Company sold the machine on June 30, 2023 for $220,000 cash. Please prepare journal entries on June 30,2023
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