Beta Inc. acquired a machine on January 1, 2010 for $47,000. Beta paid $17,000 c

Question

Beta Inc. acquired a machine on January 1, 2010 for $47,000. Beta paid $17,000 cash and signed a note for the balance. On January 3, it paid $1,100 freight costs for delivery of the machine. On January 5, Beta paid $1,900 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 $2,500. Prepare the journal entry to record depreciation on December 31, 2010. (Omit the "$" sign in your response.)

General Journal Debit Credit

Explanation / Answer

Calculation of Depreciation Cost of Machine 47000 Installation 1900 Freight 1100 Total 50000 Depreciation = Cost- Salvage/ No of years 50000-2500/10 47500/10 4750 Depreciation A/C   Dr 4750 To Machine 4750

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