5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $42.000, an estimated life of 30.000 hours, $4,500 residual value and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $42.000, an estimated life of 30.000 hours, $4,500 residual value and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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H5.
![apter 9 Assignment
5
25 of 7
3
oped
Print
erences
cost of the asset
Installation costs
Renovation costs prior to use
Repairs after production began
Required information
[The following information applies to the questions displayed below]
At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled,
were installed, and started operating. Because the machines were different, each was recorded separately in the
accounts. Details for Machine A are provided below.
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500
Journal entry worksheet
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5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of
$42,000, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate'
calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Save & Exit
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Transcribed Image Text:apter 9 Assignment
5
25 of 7
3
oped
Print
erences
cost of the asset
Installation costs
Renovation costs prior to use
Repairs after production began
Required information
[The following information applies to the questions displayed below]
At the beginning of the year, Grillo Industries bought three used machines. The machines immediately were overhauled,
were installed, and started operating. Because the machines were different, each was recorded separately in the
accounts. Details for Machine A are provided below.
View transaction list
Saved
$9,000
800
600
500
Journal entry worksheet
For BUSTERS
CUS2518
Introductory Earth...
Help
5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of
$42,000, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate'
calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Save & Exit
Check m
Transcribed Image Text:Journal entry worksheet
<
A
Record the year 2 depreciation expense for Machine B.
Note: Enter debits before credits.
Transaction
1
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
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