Question
Vita Water purchased a used machine for $120,500 on January 2, 2020. It was repaired the next day at a cost of $8,288 and installed
Vita Water purchased a used machine for $120,500 on January 2, 2020. It was repaired the next day at a cost of $8,288 and installed on a new platform that cost $1,612. The company predicted that the machine would be used for six years and would then have a $23,120 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year’s depreciation was recorded on December 31, 2020. On September 30, 2025, it was retired.
Required:
1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.
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Fundamental Accounting Principles
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
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