Question

Mars co. need an additional machine on January 1, 2019 to meet the growing demand for...

Mars co. need an additional machine on January 1, 2019 to meet the growing demand for its product. There were two alternatives, first cash purchase $2,121,000 and second Installment purchase requiring 20 semiannual payments of $200,000 due June30 and December 31 each year (8% effective rate). The expected economic life of this machine t is 15 years. Salvage value at that time is estimated to be $20,720. Straight-line depreciation is used. Interest expense is computed using the effective interest method.

Journalize all entries required during 2019 and 2020?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Sunland Company purchased a machine on January 1, 2019, for $864000. At the date of acquisition,...
Sunland Company purchased a machine on January 1, 2019, for $864000. At the date of acquisition, the machine had an estimated useful life of 6 years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2022, Sunland determined, as a result of additional information, that the machine had an estimated useful life of 8 years from the date of acquisition with no salvage. An accounting change was made in 2022 to reflect this additional...
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Required: 1. Prepare journal entries to record the machine's purchase and the costs...
On January 1, 2020, a machine was purchased for $880,000 by Windsor Co. The machine is...
On January 1, 2020, a machine was purchased for $880,000 by Windsor Co. The machine is expected to have an 8-year life with no salvage value. It is to be depreciated on a straight-line basis. The machine was leased to Wildhorse Inc. for 3 years on January 1, 2020, with annual rent payments of $290,000 due at the beginning of each year, starting January 1, 2020. The machine is expected to have a residual value at the end of the...
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
Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019,...
Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below. End-of-the-month adjustments must account for the following items: Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,050. The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period. Rent of $1,550 expired during the month. Depreciation is computed using the straight-line method. The equipment has...
On April 1, 2020, Beachee Co. sold a machine for $29,000 that was purchased on January...
On April 1, 2020, Beachee Co. sold a machine for $29,000 that was purchased on January 1, 2017. The machine cost $75,000 on that date and had a useful life of 5 years with no salvage value. Depreciation has been recorded through December 31, 2019. When Beachee records the sale, it will recognize
Problem #2 Swift Company purchased a machine on January 1, 2016, for $900,000. At the date...
Problem #2 Swift Company purchased a machine on January 1, 2016, for $900,000. At the date of acquisition, the machine had an estimated useful life of six years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2019, Swift determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no salvage. An accounting change was made in 2019 to reflect...
George & Co. purchased a machine on January 10, 2018. The total cost of the purchase...
George & Co. purchased a machine on January 10, 2018. The total cost of the purchase was $116,000. The machine has an estimated salvage value of $14,000 and an estimated useful life of 6 years. In May of 2018, the company spent $4,000 to overhaul the machine’s engine; this changed the estimate of the machine’s total useful life to 8 years. Depreciation for 2018 was recorded before the overhaul. Show calculations for the annual straight-line depreciation amounts for this asset...
Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow...
Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine’s disposal under each separate situation:...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT