Asked by Dalvin Mitchell on Jul 16, 2024
Verified
A company purchased and installed machinery on January 1 at a total cost of $93,000.Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value.The machinery was disposed of on July 1 of year four.The company uses the calendar year.
1.Prepare the general journal entry to update depreciation to July 1 in year four.
2.Prepare the general journal entry to record the sale of the machine for $27,000 cash.
Straight-Line Depreciation
An approach to apportion the price of a tangible property over its effective life in consistent annual installments.
Machinery
Machinery refers to machines or machine systems collectively, which are used in various industries for manufacturing or other operations.
Calendar Year
The one-year period that begins on January 1st and ends on December 31st, used in most accounting and financial calculations.
- Appraise and document the wear and tear costs for tangible assets employing a range of methodologies.
- Compile general journal entries to outline transactions connected to plant assets.
Verified Answer
Learning Objectives
- Appraise and document the wear and tear costs for tangible assets employing a range of methodologies.
- Compile general journal entries to outline transactions connected to plant assets.
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