Thu 1 AM Problem 9-3A (Part Level Submission) On January 1, 2017, Evers Company

Question

Thu 1 AM Problem 9-3A (Part Level Submission) On January 1, 2017, Evers Company purchased the following two machines for use in its production process cash costs $70, and $100 of oil and lubricants to be used with the machinery a $4,050 salvage value remaining at the end of that time period. Assume that the The recorded cost of this machine was $180,000. Evers estimates that the useful life of the machine is 4 years with a $10,050 salvage value remaining at the end of that time period its first year of operations. Evers that the useful life of the machine is 5 years with is used. Machine B: (a) indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) 1, 2017 2· The journal entry to record annual depreciation at December 31, 2017. No. 1. Accumulated Depreci 45,070 45,070 2. 16

Explanation / Answer

No. Account tile and explanation Debit Credit 1. Machine $       45,070 Cash $       45,070 (To record cost of Machine A) 2. Depreciation expenses $         8,204 Accumulated depreciation $         8,204 (To record depreciatio expenses for the year) Working: a. Cost of Machine A: Particulars Amount Cash Price $       43,000 Sales Tax $         1,700 Shipping Cost $             200 Insurance $             100 Installation expenses $               70 Cost $       45,070 b. Depreciation expenses as per Straight Line method = (Cost-Salvage Value)/Useful Life = (45070-4050)/5 = $       8,204

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.