Computing and revising depreciation; selling plant assets LO2 LO4 LO6
York Instruments completed the following transactions and events involving its machinery.
2009
Jan. 1 Paid $107,800 cash plus $6,470 in sales tax for a new machine. The machine is estimated to
have a six-year life and a $9,720 salvage value.
Dec. 31 Recorded annual straight-line depreciation on the machinery.
2010
Dec. 31 Due to new information obtained earlier in the year, the machine’s estimated useful life was
changed from six to four years, and the estimated salvage value was increased to $14,345.
Recorded annual straight-line depreciation on the machinery.
2011
Dec. 31 Recorded annual straight-line depreciation on the machinery.
Dec. 31 Sold the machine for $25,240 cash.
Required
Prepare journal entries to record these transactions and events
Check Dec. 31, 2010, Dr. Depr.
Expense—Machinery, $27,500
Dec. 31, 2011, Dr. Loss on
Disposal of Machine, $16,605
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