The following screenshots are my question. Thank you
On January 2, 2015, Athol Company bought a machine for use in operations. The machine has an estimated useful life of eight years and an estimated residual value of $1,561. The company provided the following infonnation: a. Invoice price of the machine. $?3,500. in. Freight paid by the vendor per sales agreement, 5830. c. Installation costs. $2,050 cash. o'. Cost of cleaning up the supplies. boxes, and other garbage that remained after the installation of the machine, $130 cash. a. Payment ofthe machine's price was made as follows: January 2: - Issued 90!] common shares of Athol Company at $6 per share. - Signed a $45,060 note payable due April 16, 2015, plus 3 percent interest. - Balance of the invoice price to be paid in cash. The invoice allows for a 3 percent cash discount ifthe cash payment is made by January 11. January 15: Paid the balance of the invoice price in cash. April 16: Paid the note payable and interest in cash. I. On June 30, 201?. the company completed the replacement of a major part of the machine that cost $12,535. This expenditure is expected to reduce the machine's operating costs, increase its estimated useful life by two years, and decrease its estimated residual value to $2,031 g. Assume that on October 1, 2022.. the company decided to replace the machine with a newer, more efficient model. It then sold the machine to Sako Ltd. on that date for $23,200 cash. Required: 1. Compute the acquisition cost of the machine. _:| 2. Indicate the accounts aected, amounts of the effects of the purchase and subsequent cash payments on the accounting equation. [Enter any decreases to account balances with a minus sign.) AW\" 1'5 _I-I 3. Prepare the joumel entries to record the purchase of the machine and subsequent cash payments on January '15 and April 16. 215. {Do not round intermediate calculations. If no entry is required for a transactionievent, select "No journal entry required\" in the first aeeount lield.} Journal entry 1illlrorltsheet Record purchase of machine by issuing shares,r signing a note and the balance on account. Note: Enter debits before credits. 4. Compute the depreoiation expense for each of the years 2D15, 2MB. and EMT. assuming the company's scal year ends on December 31. Use the straight-line depreoiation method. [Do not round intermediate ealeulatiens.} 5. Prepare the journal entryr to reoord the sale of the maohine on Dotober 1, 2022. (Hint: First determine the balanoe of the eooumulated depreoiation aooount on that date.) [De net round intermediate calculations. If no entry is required for a tl'ansaotionletrent, seleet "Ho journal entry required" in the rst aooeu nt field.) Jeu rnal entryir worksheet Record sale of machinery at a gain. Note: Enter debits before credits. 5. Prepare the journal entry.r to record the sale of the machine on October 1, 2-022. (Hint: First determine the balance of the accumulated depreciation account on that date.) [Do not round intermediate calculations. If no entry is required for a transactionle'lrent, select "Ho journal entry required" in the rst account field.) View transaction list Journal entry worksheet Record sale of machinery at a gain. Note: Enter debits before credits
