Question

On December 31, 2020, Flounder Inc has a machine with a book value of $1.052.800. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1.456.000 403,200 $1.052.800 Depreciation is computed at $67,200 per year on a straight-line basis. A fire completely destroys the machine on August 31, 2021. An insurance settlement of $481,600 was received for this casualty. Assume the settlement was received immediately (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit August 31, 2021 (To record current depreciation.) August 31, 2021 On April 1, 2021. Flounder sold the machine for $1,164,800 to Yoakam Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If noe is required, select "No Entry for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit April 1. 2021 (To record current depreciation) April 1. 2021 On July 31, 2021. the company donated this machine to the Mountain King City Council. The fair value of the machine at the time of the donation was estimated to be $1.232000 (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry for the account titles and enter for the amounts) Date Account Titles and Explanation Debit Credit July 31, 2021 To record current depreciation) July 31, 2021

Answer 1

$ 444 800 y boile 8/31/2011 Cash Depreciation Expense accumulated depreciation $HH800 (to reced Corrent depreciation) $481600 Accumulated Depreciation - Machinery $448000 Low on disposal of Machinery $ 526 HOO Machinery $14 56000 (To record lou on machine) Depreciation Expense Accumulated depreciation $16800 ( To venced current depreciation), Cash 1164 800 #20000 Accumulated Depreciation - Machinery $ Goin on disposal of Machine $ 128800 Machinery $14560001 ( To read sale of Machinery ) $16800 31/7/2021 $ 39200 39200 $1232000 Depreciation Expense ' Accumulated depreciation C to record correuil depreciation) contribution Expense Accumulated depreciation - Moelwinery $442400 Gain on disposal of Machinery $218000 Machinery ( To record donation of the Machine). hind $14156ood