Question

Need help with the cost of the machies A,B, and c. Also journal entry.

At the beginning of the year, Grillo Industries bought three used machines from Freeman Incorporated. The machines immediateh were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in th accounts Cost of the asset Installation costs Renovation costs prior to use Repairs after production began Machine A $10,200 900 700 Machine B $39,400 3,300 2,900 Machine C $23,200 2.400 3,400 1,900 500 800 By the end of the first year, each machine had been operating 8,000 hours. Required: 1. Compute the cost of each machine. 2. Prepare the journal entry to record depreciation expense at the end of year 1, assuming the following: Estimates Residual Value $2,200 1,800 1,700 Depreciation Method Straight-line Units-of-production Double-declining-balance Machine Life 5 years 20,000 hours 10 years A B

Answer 1

Purchase Price	$74,000
Sales tax	$2,000
Painting cost of logo	$1,600
Safety testing	$270
Total Cost of Truck	$77,870
So Option A is answer
	Machine A	Machine B	Machine C
Cost of the assets	$10,200	$39,400	$23,200
Add:Installation costs	$900	$3,300	$2,400
Add:Renovation cost prior to use	$700	$2,900	$3,400
Total Cost of Machines	$11,800	$45,600	$29,000
Depreciation expenses for Year 1	$1,920	$17,520	$5,800
	(11800-2200)/5	(45600-1800)*8000/20000	29000*10%*2
Account and explanation	Debit	Credit
Depreciation expenses-Machine A	$1,920
Depreciation expenses-Machine B	$17,520
Depreciation expenses-Machine C	$5,800
Accumulated Depreciation-Machine A		$1,920
Accumulated Depreciation-Machine B		$17,520
Accumulated Depreciation-Machine C		$5,800