Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the company purchased a machine on 1 january 2018.

The company purchased a machine on 1 January 2018. The information of the machine is...

50.1K

Verified Solution

Question

Accounting

image

The company purchased a machine on 1 January 2018. The information of the machine is as follows: Costs on Acquisition on 1 February 2019: Machine Cost (paid in cash by purchaser) $25,000 Import Tax (paid in cash by purchaser) $2,000 Delivery Fees (paid in cash by purchaser) $3,000 Depreciation Method: Reducing balance method at the rate of 40% Residual value: $4,000 Useful Life: 5 Years 1. Prepare the journal entry for the purchase of the machine. (1 Marks) 2. Calculate the depreciation expense for the year 2019. (2 Marks) 3. On 1 January 2020, the machine was sold for $12,000. Prepare the journal entry for this sale. (4 Marks)

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

Resources Corporation is estimating its WACC. Its target capital structure is 40% debt, 10% preferred stock,...

Finance
Q

Contracts for two construction jobs are randomly assigned to one or more of three firms A,...

Basic Math
Q

An achromatic convergent doublet has power of 2D If power of convex lens is 5D...

Physics
Q

Assume the followings Total A/R 200,000 Total sales 130,000 (30,000 cash sales) 1....

Accounting
Q

Jeff Ryan bought 200 shares of BUI at $19.50 per share. Eight weeks later he...

Accounting
Q

A company normally sells its product for $20 per unit. However, the selling price has...

Accounting
Q

Forcum Company reports the following information (in millions) during a recent year: net sales, $12,408.5;...

Accounting
Q

please help with b!!!!

Accounting
Q

Problem 9-2B Entries for payroll transactions P2 P3 Tavella Company's first weekly pay period of...

Accounting
Q

prepare direct method cashflow P5.12 L&G Inc., a retailer of garden tools that follows ASPE,...

Accounting
Q

13 In liner Programming model B constraint restricts (1 (1 ) .D) Value of objective...

Finance
Q

On September 23, Business paid rent OMR 500. What is the Debit Account

Accounting