1. Impact on accounting equations
Date | Assets | = | Liabilities | + | Equity | ||
Jan 01 | 0 | 0 | 0 | ||||
Jan 02 |
+15000 -4000 |
+15000 -4000 |
0 0 |
||||
Jan 03 |
-200 +200 |
0 0 |
0 0 |
||||
Jan 05 |
-900 +900 |
0 0 |
0 0 |
||||
2. The acquisition cost of Machine = Purchase Cost + Freight Cost + Installation Cost
= 15000+200+900
= 16100
3. Depreciation expense for the first year = (Cost-Residual Value)/Useful Life
= (16100-1600)/10
= 14500/10
= 1450
4. Book Value of Machine at the end of Second Year = Cost - Dep for 1st Year - Dep for 2nd Year
= 16100- 1450-1450
= 13200
Required Parts 1-4 Please! O'Connor Company ordered a machine on January 1 at a purchase price...
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