At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost $26,000 but had to be overhauled (at a cost of $1,280) before it could be installed (at a cost of $640) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $360 in each year. The shelving cost $9,350 and was expected to last 5 years, with a residual value of $610. The forklift cost $11,250 and was expected to last six years, with a residual value of $2,020. 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list

At the beginning of the year, Phantom Industries bought machinery, shelving, and a forklift. The machinery initially cost $26,000 but had to be overhauled (at a cost of $1,280) before it could be installed (at a cost of $640) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $360 in each year. The shelving cost $9,350 and was expected to last 5 years, with a residual value of $610. The forklift cost $11,250 and was expected to last six years, with a residual value of $2,020. 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list

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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