Question

Muual.com/llow/connect html Danas Youtube Twith fFacebook i bnb t herapy wity group Chapter 10 Homework 3. Onslow Co. purchases a used machine for $178,000 cash on January 2 and readies it for use the next day at a $2.840 cost. On January 3, it is installed on a required operating platform costing $1160, and it is further readied for operations The company predicts the machine will be used for six years and have a $14,000 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 Part 2 of 3 2. Prepare journal entries to record depreciation of the machine at December 31 3.75 Doints View transaction list eBook Journal entry worksheet References Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits Date General Journal Debit Credit Dec 31 < Prey 3 4 of 4 !!! Next >

Answer 1

	Purchase price of machine	$1,78,000
	Add:Cost incurred to ready the machine	$2,840
	Add:Installation of operating platform	$1,160
	Carrying value of Assets	$1,82,000
	Salvage value	$14,000
	Depreciable cost of asset	$1,68,000
	Annual Depreciation expenses($168,000/6 years)	$28,000
Dec-31
Year 1	Depreciation expenses-Machine	$28,000
	Accumulated Depreciation-Machine		$28,000
Dec-31
Year 5	Cash(Salvage value)	$14,000
	Accumulated Depreciation($28,000*5 years)	$1,40,000
	Loss on Disposal	$28,000
	Machine		$1,82,000