Vita Water purchased a used machine for $121,400 on January 2, 2020. It was repaired the next day at a cost of $9,163 and installed on a new platform that cost $1,637. The company predicted that the machine would be used for six years and would then have a $23,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full years depreciation was recorded on December 31, 2020. On September 30, 2025, it was retired.

on a new platform that cost $1.637. The company predicted that the machine would be used for six years and would then have a $23,720 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 pald. View transaction list 1 Record purchase of machine. 2 Record capital repairs on machine. 3 Record installation of machine. Credit Note : = journal entry has been entered Record entry Clear entry View general journal 2. Prepare entries to record depreciation on the machine on December 31 of its first year and on September 30 in the year of its disposal. (Round Intermediate calculations to the nearest whole dollar.) View transaction list Journal entry worksheet Record the depreciation. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2020 Record entry Clear entry View general journal 3. Prepare entries to record the retirement of the machine under each of the following unrelated assumptions: a. It was sold for $25.000. View transaction list Journal entry worksheet Record the sale of machine for $25,000. Note: Enter debits before credits. Date General Journal Debit Credit Sep 30. 2025 Record entry Clear entry View general journal b. It was sold for $35,000. View transaction list Journal entry worksheet Record the sale of machine for $35,000. Note: Enter debits before credits. Date General Journal Debit Credit Sep 30, 2025 Record entry Clear entry View general journal c. It was destroyed in a fire and the Insurance company paid $29,000 in full settlement of the loss claim. View transaction list Journal entry worksheet Record the disposal of machine on full settlement by insurance company. Note: Enter debits before credits. Date General Journal Debit Credit Sep 30, 2025 Record entry Clear entry View general journal