At the beginning of the year, Oakmont Company bought three used machines from Am

Question

At the beginning of the year, Oakmont Company bought three used machines from American Manufacturing, Inc. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Machine A Machine B Machine C Amount paid for asset nstallation costs Renovation costs prior to use Repairs after production began 519.700 10,200 600 400 1.000 350 150 320 59.900 300 700 580 By the end of the first year, each machine had been operating 4,000 hours Required 1. Compute the cost of each machine. Machine Machine A Machine B Machine C 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.) Estimates Machine Method Residual Value 1,200 2.000 2.100 Life 5 years Straight-line 20,000 hours 10 years Double-declining-balance View transaction list Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1 assuming each machine has its own accumulated depreciation account. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general jourmal

Explanation / Answer

1) Calculate cost of machine :

b) Journal entry :

Cost of machine machine A 20200 Machine B 11200 Machine C 10900

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