Question

Chapter 08 Homework Saved Rayya Co. purchases and installs a machine on January 1, 2018, at a total cost of $168,000. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is disposed of on July 1, 2022, during its fifth year of service. 1 points Prepare entries to record the partial year's depreciation on July 1, 2022, and to record the disposal under the following separate assumptions: (1) The machine is sold for $72,000 cash. (2) An insurance settlement of $57,600 is received due to the machine's total destruction in a fire. eBook View transaction list Hint Journal entry worksheet < 1 2 3 Print Record the depreciation expense as of July 1, 2022. References Note: Enter debits before credits. Date July 01, 2022 General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Journal Entrus Gcncral Journal Dake Debit Caudet Depresialion Machine July 1.20.22 $108,000 108,000 Jaly 1 2022 Cash 47.9.000 Jachinc Profl ard los ale $60,000 $12,000 Shly 1,2022 Cash Proft & Lors alc Machine $3600 $ 2400 $60000

Notes Cast- Sabng value Depicialioo No. yhl you Cost:162000 Salage ualua 0 168,000 Dqpseicalion Dep.frem 1.Jan 2019 to b 13an 2০२२ (ic fo 4 yeas) 4,000x $96,000 1 Depreciation from 1 Jan to 1July (i foh 6mn) 24,000 x 6/1 $1200D Depreciali Enpunu pt 1Jly 2022 4 $ *

Cost: $168,000 $108,000 Aearecialiov Cast-Depaesat Book valuu as n 1 July 20O22 : 168,000-102,000 460,00a Bok valu$ 60,000 Sale Value: $72,000 YhOfl on Sal d Machin:$72,000-460,000 $2,000 Bok ualu ర,000 ansurana claim 57,600 o $60,000 -S7,60 $२५०0