Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Take me to the text On April 1, 2013, Bob's Restaurant and Brewery purchased a new bottle-sealing machine for $120,000. The machine had an estimated
Take me to the text On April 1, 2013, Bob's Restaurant and Brewery purchased a new bottle-sealing machine for $120,000. The machine had an estimated useful life of 10 years and is expected to have no residual value. Assume that the company has adopted a partial-year depreciation policy, where depreciation is taken on a monthly basis. The company uses straight line depreciation. The fiscal year-end for Bob's Restaurant and Brewery is December 31. On April 30, 2021 Bob's Restaurant and Brewery sold this machine for $49,000. Required a) Prepare the depreciation table over the life of the machine. Do not enter dollar signs or commas in the input boxes. Round all dollar figure answers to the nearest whole number. Year Cost of Long-Term Asset Depreciation Expense Accumulated Depreciation to Date Net Book Value 2013 $120,000 $ $ 2014 $120,000 $ $ $ 2015 $120,000 $ $ $ 2016 $120,000 $ $ 2017 $120,000 $ $ 2018 $120,000 $ $ 2019 $120,000 $ $ $ 2020 $120,000 $ $ $ 2021 $120,000 $ $ $ b) Record the journal entry for the sale assuming that the depreciation for 2021 has already been recorded ge 2015 $120,000 $ $ $ 2016 $120,000 $ $ $ 2017 $120,000 $ $ $ 2018 $120,000 $ $ $ 2019 $120,000 $ $ $ 2020 $120,000 $ $ $ 2021 $120,000 $ $ b) Record the journal entry for the sale, assuming that the depreciation for 2021 has already been recorded. Enter all debit accounts in alphabetical order. Enter all credit accounts in alphabetical order. Date Account Title and Explanation Debit Credit Apr 1 Accumulated Depreciation Cash Gain on Exchange of Asset Machine To record the sale of an asset Check
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