Question

Rayya Co. purchases a machine for $117,600 on January 1, 2019. Straight-line depreciation is taken each...

Rayya Co. purchases a machine for $117,600 on January 1, 2019. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2023, during its fifth year of service.
  
Prepare entries to record the partial year’s depreciation on July 1, 2023, and to record the sale under each separate situation. (1) The machine is sold for $50,400 cash. (2) The machine is sold for $40,320 cash.

  • Record the depreciation expense as of July 1, 2023.

Note: Enter debits before credits.
Date General Journal Debit Credit
July 01, 2023
  • Record the sale of the machinery for $50,400 cash.

Note: Enter debits before credits.
Date General Journal Debit Credit
July 01, 2023
  • Record the machine sold for $40,320 cash.

Note: Enter debits before credits.
Date General Journal Debit Credit
July 01, 2023
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a) Journal entry

Date account and explanation Debit Credit
July 1,2023 Depreciation expense (117600/7)*6/12 8400
Accumulated depreciation-Machine 8400

b) Journal entry

Date account and explanation Debit Credit
July 1,2023 Cash 50400
Accumulated depreciation-Machine (117600/7*4.5) 75600
Gain on sale of machine 8400
Machine 117600

c) Journal entry

Date account and explanation Debit Credit
July 1,2023 Cash 40320
Accumulated depreciation-Machine (117600/7*4.5) 75600
Loss on sale of machine 1680
Machine 117600
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rayya Co. purchases a machine for $210,000 on January 1, 2019. Straight-line depreciation is taken each...
Rayya Co. purchases a machine for $210,000 on January 1, 2019. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2023, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2023, and to record the sale under each seperate situation. (1) The machine is sold for $105,000 cash. (2) The machine is sold for $88,200 cash.
Rayya Co. purchases a machine for $201,600 on January 1, 2019. Straight-line depreciation is taken each...
Rayya Co. purchases a machine for $201,600 on January 1, 2019. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2023, during its fifth year of service.    Prepare entries to record the partial year’s depreciation on July 1, 2023, and to record the sale under each seperate situation. (1) The machine is sold for $86,400 cash. (2) The machine is sold for $69,120 cash
Rayya Co. purchases a machine for $210,000 on January 1, 2020. Straight-line depreciation is taken each...
Rayya Co. purchases a machine for $210,000 on January 1, 2020. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2024, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2024, and to record the sale under each separate situation. (1) The machine is sold for $105,000 cash. (2) The machine is sold for $88,200 cash. 1)Record...
Chapter 8 Question 4: Onslow Co. purchases a used machine for $288,000 cash on January 2...
Chapter 8 Question 4: Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $10,000 cost. On January 3, it is installed on a required operating platform costing $2,000, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of...
Rayya Co. purchases and installs a machine on January 1, 2017, at a total cost of $117,600. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2021, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2021, and to record the disposal under the following separate assumptions: (1) The machine is sold for $58,800 cash. (2)...
Diaz Company owns a machine that cost $126,200 and has accumulated depreciation of $90,400. Prepare the...
Diaz Company owns a machine that cost $126,200 and has accumulated depreciation of $90,400. Prepare the entry to record the disposal of the machine on January 1 in each seperate situation. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return. Diaz sold the machine for $15,600 cash. Diaz sold the machine for $35,800 cash. Diaz sold the machine for $40,800 cash. Journal entry worksheet Record the disposal of the machine...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the...
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2018. Edison purchased the equipment from International Machines at a cost of $112,446. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $15,300 at the beginning of each period Economic life of asset 2 years Fair value of asset...
John’s purchased merchandise on account for $6,400. Freight charges of $1,000 were paid in cash. John’s...
John’s purchased merchandise on account for $6,400. Freight charges of $1,000 were paid in cash. John’s returned some of the merchandise purchased in (1). The cost of the merchandise was $1,300 and John’s account was credited by the supplier. Merchandise costing $3,500 was sold for $6,600 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record...
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of...
Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $298,300 and machine hours to be 15,700. Actual manufacturing overhead and machine hours were $336,300 and 16,700, respectively. Required: 1. & 2. Prepare the journal entries for actual and applied manufacturing overhead and transfer of manufacturing overhead account balance to cost of goods sold. (If no entry is required for a transaction/event, select...
Rayya Co. purchases and installs a machine on January 1, 2018, at a total cost of...
Rayya Co. purchases and installs a machine on January 1, 2018, at a total cost of $92,400. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is disposed of on July 1, 2022, during its fifth year of service.    Prepare entries to record the partial year’s depreciation on July 1, 2022, and to record the disposal under the following separate assumptions: (1) The machine is sold for $46,200 cash....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT