At the beginning of the current year, a company purchased and placed in service a machine with a cost of $240,000.  The company estimated the machine’s useful life to be five years or 60,000 units of output with an estimated salvage value of $60,000.  During the current year, 15,000 units were produced. Show your work below and then record the entries in the journal Calculate the depreciation using the: Straight-line method of depreciation Units-of-production method of depreciation Prepare the necessary December 31 adjusting entry to record depletion for the current year using the general journal.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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At the beginning of the current year, a company purchased and placed in service a machine with a cost of $240,000.  The company estimated the machine’s useful life to be five years or 60,000 units of output with an estimated salvage value of $60,000.  During the current year, 15,000 units were produced. Show your work below and then record the entries in the journal

Calculate the depreciation using the:

Straight-line method of depreciation

Units-of-production method of depreciation

Prepare the necessary December 31 adjusting entry to record depletion for the current year using the general journal.

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