The Perth Construction Company purchased a piece of machinery on June 29, 2013 for

$53 000. Freight costs came to $800. It cost $1 700 to install and test the machinery. At this time it was

estimated that the machine would be used for six years and would have a residual value of $8,000 at

that time.

Before recording the 2016 depreciation expense, the owners realized that this machinery would last

only five years, and therefore revised the amortization expense calculation.

On July 2, 2017, the machine broke down and rather than repair it, the company decided to sell it for

$12 000.

a) Prepare the journal entry to record the purchase of the machine on June 29, 2013.