At the beginning of the year, Young Company bought three used machines from Vinc

Question

At the beginning of the year, Young Company bought three used machines from Vince, Inc. The machines immediately were overhauled, were installed and started operating. Because the machines were different, each was recorded separately in the accounts Machine A Machine Machine Amount paid for $8,150 $26,700 $10,400 450 850 750 2,600 1,250 1,450 460600 asset Installation costs Renovation costs prior to use Repairs after 510 production began By the end of the first year, each machine had been operating 6,000 hours 1. Compute the cost of each machine. Machine Machine 2. Prepare the jounal entry to record depreciation expense at the end of year 1, assuming the folowing: (Do not round intermediate calculations. If no entry is required for a transactionlevent, select "No Journal Entry Required" in the first account field.) Machine Life Residual Value Method A 5 years hours C 6 years 600 Straight-ine 0,000 production 1,800 balance TIP Remember that the formula for double-dedining-balance uses t View transaction list Journal entry worksheet Record the depreciation expense for the three used machines at the end of year 1 Note: Enter debits before credits

Explanation / Answer

Solution 1.1:

Solution 1.2:

Depreciation expense for the year:

Machine A - SLM = (Cost - Salvage value) / Life = ($11,200 - $600) / 5 = $2,120

Machine B - Unit of production = Depreciable cost * Operating hours for the year / Total expected operating hours

($28,800 - $600) * 6000 / 20000 = $8,460

Machine C - DDB - $12,600 * 33.33333% = $4,200

Note: As multiple question are posted, i have answered first question as per chegg policy, kindly post separate question for answer of remaining questions.

Computation of Cost of Each machine - Young company Particulars Machine A Machine B Machine C Cost of asset $8,150.00 $26,700.00 $10,400.00 Installation cost $450.00 $850.00 $750.00 Renovation cost prior to use $2,600.00 $1,250.00 $1,450.00 Total cost to be capitalized $11,200.00 $28,800.00 $12,600.00

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