On December 31, 2020, Coronado Inc. has a machine with a book value of $1,165,600. The original cost and related accumulateddepreciation at this date are as follows.Machine$1,612,000Less: Accumulated depreciation446,400Book value$1,165,600Depreciation is computed at $74,400 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 recordthe transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.(a)A fire completely destroys the machine on August 31, 2021. An insurance settlement of $533,200 was received for thiscasualty. Assume the settlement was received immediately. (Credit account titles are automatically Indented when amount isentered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

The depreciation expense is charged on the non-current asset on which the tear & wear charges…

(a) A fire completely destroys the machine on August 31, 2021. An insurance settlement of $533,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

(a) A fire completely destroys the machine on August 31, 2021. An insurance settlement of $533,200 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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