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Question - Jolt Jeeps Incorporated is in the business of producing fuel efficient all terrain Jeeps. Jolt Jeeps purchases a new robotic assembly machine on April 30, 2012 for $7,250,000; the machine has an estimated life of 10 years, and a Jeep production capacity of 5,000,000 units. In the engine of the robotic assembly machine is a solid gold covering for the outer mantel of the gear box, this is to facilitate for shifting of the engine over time, the 24 Karat gold covering is used because it is soft and has more give than steel. This covering is worth $1,250,000 and can be resold on the open market.
Prepare the appropriate journal entries for December 31, 2012; December 31, 2013; December 31, 2014 and December 31, 2015 using the information given for Jolt Jeeps April 30, 2012 purchase of the robotic assembly machine. Assume the organization uses the double-declining balance method to account for the annual deprecation incurred on the assembly machine.
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At December 1, 2010, Orear Company's Accounts Receivable balance was $1,200. During December, Orear had credit sales of $5,000 and collected accounts receivable of $4,000. At December 31, 2010, the Accounts Receivable balance is ??
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