Question
The following data relates to Oyster Company's purchase of a new machine Machine Cost $10,000 Sales Tax 800 Engine Replacement 2,200 Oil Change 300 Salvage
The following data relates to Oyster Company's purchase of a new machine
| Machine Cost | $10,000 |
| Sales Tax | 800 |
| Engine Replacement | 2,200 |
| Oil Change | 300 |
| Salvage Value | 1,000 |
| Asset Life (at the time of purchase) | 9 years |
The machine was bought April 1 and the engine replacement and oil change were done the next week. The salvage value remains the same after the engine replacement but the life is extended one year.
Which of the following would be included in the journal entry (April 8th) to record the engine replacement and Oil Change (made in a single entry)?
Group of answer choices
Debit machine for 2,500
Debit cash for 2,500
Debit machine for 2,200
Credit cash for 300
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
22nd edition
9781259566905, 978-0-07-76328, 77862279, 1259566900, 0-07-763289-3, 978-0077862275
