User Account

All Pages

Prepare journal entries to record the machine purchase

Assignment Help Accounting Basics
Reference no: EM132080518

Question - Onslow Co. purchases a used machine for $144,000 cash on January 2 and readies it for use the next day at a $6,000 cost.

On January 3, it is installed on a required operating platform costing $1,200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $17,280 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.

1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.

2. Prepare journal entries to record depreciation of the machine at December 31.

(a) Its first year in operations.

(b) The year of its disposal.

3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions:

(a) It is sold for $24,500 cash.

(b) It is sold for $98,000 cash.

(c) It is destroyed in a fire and the insurance company pays $35,000 cash to settle the loss claim.

Reference no: EM132080518

Questions Cloud

Detail the steps involved in campaign planning : Describe the nature of public relations campaigns and distinguish them from public relations programs. Detail the steps involved in campaign planning.
What role do adjusting entries play in the accounting cycle : Your readings for this week, as well as the previous Application, have shown you the accounting cycle. What role do adjusting entries play in accounting cycle
Develop two sales strategies to effectively counter : Identify, list and explain two specific (to your business) objections that customers might have to purchasing your offerings/products/services, etc.
What would be the consumer surplus : If Big Top is regulated to produce the efficient output, what is the quantity of tickets sold, and what would be the price of a ticket, and what would.
Prepare journal entries to record the machine purchase : Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred
Charging the same price to all consumers : A monopolist engages in price discrimination Select one: a. by charging the same price to all consumers. b. by charging a lower price when marginal cost is high
Establish emotional appeal by connecting emotionally : You should establish emotional appeal by connecting emotionally with the audience. Using a story is a great way to present emotional appeal.
Compute depreciation for each year : Compute depreciation for each year (and total depreciation of all years combined) for the machine under each depreciation method
What are the most significant factors driving globalization : what are the most significant factors driving globalization? Which do you think is the single most significant factor? Why?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd