Beta Inc. acquired a machine on January 1, 2010 for $44,000. Beta paid $13,000 c

Question

Beta Inc. acquired a machine on January 1, 2010 for $44,000. Beta paid $13,000 cash and signed a note for the balance. On January 3, it paid $1,900 freight costs for delivery of the machine. On January 5, Beta paid $2,400 to have the machine installed. On December 30, Beta paid $600 for annual maintenance on the machine. On December 31, Beta recorded depreciation using the straight-line method. Beta expects to use the machine for 10 years at which time it expects a residual value of $3,200. Prepare the journal entry to record depreciation on December 31, 2010. (Omit the "$" sign in your response.)

Beta Inc. acquired a machine on January 1, 2010 for $44,000. Beta paid $13,000 cash and signed a note for the balance. On January 3, it paid $1,900 freight costs for delivery of the machine. On January 5, Beta paid $2,400 to have the machine installed. On December 30, Beta paid $600 for annual maintenance on the machine. On December 31, Beta recorded depreciation using the straight-line method. Beta expects to use the machine for 10 years at which time it expects a residual value of $3,200. Prepare the journal entry to record depreciation on December 31, 2010. (Omit the "$" sign in your response.)

Explanation / Answer

Depreciation Expense ---> 1/10 * ( 44000 + 1900 + 2400 ) = 4830 Dr

Accumulated depreciation -> 4830 Cr

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