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PA9-1 Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods (LO 9. 2, LO 9-3) 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. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Machine A Machine B Machine c $ 9,200 $38,400 $22,200 900 2,300 1.400 700 1,900 2,400 700 800 900 By the end of the first year, each machine had been operating 8,000 hours Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Residual Machine Life Value 5 years $1,200 B 20,000 hours 1,600 10 years 1,600 Depreciation Method Straight-lin Units-of-production Double-declining- balance Complete this question by entering your answers in the tabs below. Required Required Compute the cost of each machine. Cost of Machine Machine A Machine B Machine C Required 2 > Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Residual Machine Life Value 5 years $1,200 20,000 hours 1,600 10 years 1,600 Depreciation Method Straight-line Units-of-production Double-declining- balance Complete this question by entering your answers in the tabs below. Required Required 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.) Show less View transaction list Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1. Note: Enter debits befofe credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

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