Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at the beginning of the year, grillo industries bo

At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated....

50.1K

Verified Solution

Question

Accounting

At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. 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
Cost of the asset $ 10,500 $ 39,700 $ 23,500
Installation costs 800 3,600 2,700
Renovation costs prior to use 600 3,200 3,700
Repairs after production began 800 600 2,200

By the end of the first year, each machine had been operating 8,000 hours.

Required:

Compute the cost of each machine.

Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following:

Estimates
Machine Life Residual Value Depreciation Method
A 5 years $ 2,500 Straight-line
B 20,000 hours 2,100 Units-of-production
C 10 years 2,000 Double-declining-balance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Keys Printing plans to issue 20-year non-callable bonds at par value. The bonds would pay a...

Finance
Q

Consider the following production function for bus transportation in a particular city: Q= a Where Fuel input in...

Statistics
Q

using socialogical imagination what social problem or issue do you have difficulty examining without personal judgment? Why? write one...

Psychology
Q

19R The frequency of an alternating current is 50Hz The minimum time taken by it...

Physics
Q

To indirectly measure the distance across a lake Lauren makes use of a couple landmarks...

Geometry
Q

X 3X 4 8 Find the minimum and maximum if they exist of the objective...

Basic Math
Q

Write the phrase as an expression. a number b squared An expression is Basic

Basic Math
Q

5 A table of selected values is given for a one to one function g...

Calculus
Q

The Research and Development Department is most likely considered to be a(n) None of these...

Accounting
Q

Question #3 Month January 2020 February March April May Vune July August September October Each...

Accounting
Q

Current Attempt in Progress The stockholders' equity accounts of Ivanhoe Corporation on January 1, 2027,...

Accounting
Q

Required: For the following accounts from Mookie The Beagle Concierge QBO Chart of Accounts, identify...

Accounting