Question

Zephyr Minerals completed the following transactions involving machinery Machine No. 1550 was purchased for cash on April 1, 2017, at an installed cost of $87.000. Its useful life was estimated to be sox years with a $6,000 trade-in value. Straight-line depreciation was recorded for the machine at the ends of 2017, 2018, and 2019. On March 29. 2020, it was traded for Machine No. 1795, with an instaled cash price of $81,000. A trade-in allowance of $32,110 was received for Machine No. 1550, and the balance was paid in cash. The fair values of Machine No. 1550 and Machine No. 1795 could not be determined Machine No. 1795's life was predicted to be four years with a trade-in value of $10,100 Double declining-balance depreciation on this machine was recorded each December 31 On October 2.2021. t was traded for Machine No BT 311. which had an installed Cash price of $722,000, the machine's fair value. A trade-in alowance of $10,000 was received for Machine No. 1795, and the balance was pad in cash It was estimated that Machine No. BT-311 would produce 200,000 units of product dunng its five year usetul life, after which it would have a $20,000 trade-in value Units of-production depreciation was recorded for the machine for 2021, a period in which it produced 43,000 units of product. Between January 1, 2022, arnd August 21, 2024, the machine produced 118,000 more units On August 21, 2024, it was sold for $83,100 Required: Prepare journal entries to record: (Round intermediate calculations to the nearest whole dollar) a. The depreciation expense recorded to the nearest whole month on the first December 31 of each machine's life (Round the final answers to no entry is required for a transaction, select "No journal entry required" in the first account field) nal answers to the nearest whole dollar. If

Answer 1