$1,404,000 388,800 $1,015,200 (a) Date Account Titles and Explanation Debit Cred
ID: 2555912 • Letter: #
Question
$1,404,000
388,800
$1,015,200
(a)
Date
Account Titles and Explanation
Debit
Credit
(To record current depreciation.)
(To record loss of the machine.)
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(b)
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(c)
The parts of this question must be completed in order. This part will be available when you complete the part above
On December 31, 2017, Metlock Inc. has a machine with a book value of $1,015,200. The original cost and related accumulated depreciation at this date are as follows.Machine
$1,404,000
Less: Accumulated depreciation388,800
Book value$1,015,200
Depreciation is computed at $64,800 per year on a straight-line basis.
Presented below is a set of independent situations. For each independent situation, indicate the journal entry to be made to record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.
Explanation / Answer
Journal entry :
Date accounts & explanation debit credit Aug 31,2018 Depreciation expense (64800*8/12) 43200 Accumulated depreciation 43200 (To record depreciation) Aug 31,2018 Cash 464400 Accumlated depreciation (388800+43200) 432000 Loss from fire of machine 507600 Machine 1404000 (To record fire in machine)Related Questions
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