ooo Inland C... LTE 7:56 AM 54% edu gen wileyplus.com Weygandt, Accounting Princ
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ooo Inland C... LTE 7:56 AM 54% edu gen wileyplus.com Weygandt, Accounting Principles, 12e Problem 10-3A (Part Level Submission) On January 1, 2017, Evers Company purchased the following two machines for use in its production process. Machine A The cash price of this machine was $48,000. Related expenditures included: sales tax $2,600, shipping costs $200 insurance during shipping $50, installation and testing costs $60 and $100 of oil and lubricants to be used with the machinery during its first year of operations. Evers estimates that the useful life of the machine is 5 years with a $5,050 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,150 salvage value remaining at the end of that time period. Machine B: Prepare the following for Machine A. (Round answers to O decimal places, e.g. 5,125. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) . The journal entry to record its purchase on January 1, 2017 2. The journal entry to record annual depreciation at December 31, 2017 Attempts: 0 of 3 used SAVE POR ATER The parts of this question must be completed in order. This part will be available when you complete the part above.Explanation / Answer
Machine A:
working note: first let us calculate the price of machine A:
note2:
depreciation = (cost - salvage value) / life in number of years.
($50,910 - $5,050) / 5 years.
=>($50,910 - $5,050) / 5 years.
=>$9,172.
1.Journal entry on January 1,2017.
2.Journal entry to record annual depreciation at december 31,2017.
Cash price $48,000 Sales tax $2,600 Shipping costs $200 Insurance $50 Installation and testing costs $60 Total cost of machinery $50,910Related Questions
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