Question

Problem 10-03A a-c (Part Level Submission) On January 1, 2020, Flint Company purchased the following two machines for use in its production process. Machine A The cash price of this machine was $46,000. Related expenditures included: sales tax $3,250, shipping costs $200, insurance during shipping $110, installation and testing costs $90, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Flint estimates that the useful life of the machine is 5 years with a $4,200 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used Machine B The recorded cost of this machine was $180,000. Flint estimates that the useful life of the machine is 4 years with a $9,850 salvage value remaining at the end of that time period. Your answer is partially correct. Try again. Prepare the following for Machine A. (Round answers to o decimal places, e.g. 5,125. 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 0 for the amounts.) 1. The journal entry to record its purchase on January 1, 2020 2. The joumal entry to record annual depreciation at December 31, 2020 No. Account Titles and Explanation 1. Equipment Debit Credit Cash 49750 2. Depreciation Expense Accumulated Depreciation-Equipment

Answer 1