At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) 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 $350 in each year. The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and was expected to last six years, with a residual value of $2,000. 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 Journal entry worksheet A > Record the year 2 depreciation expense for the machinery. Note: Enter debits before credits. Transaction General Journal Debit Credit Depreciation Expense Accumulated Depreciation, Machinery 1
At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) 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 $350 in each year. The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and was expected to last six years, with a residual value of $2,000. 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 Journal entry worksheet A > Record the year 2 depreciation expense for the machinery. Note: Enter debits before credits. Transaction General Journal Debit Credit Depreciation Expense Accumulated Depreciation, Machinery 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How do you get the debit and credit
![At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost
$25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) 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 $350 in each year.
The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and
was expected to last six years, with a residual value of $2,000.
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
Journal entry worksheet
A
>
Record the year 2 depreciation expense for the machinery.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Depreciation Expense
Accumulated Depreciation, Machinery](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89357aa5-6ef9-4473-bc37-024e7992ab3a%2F4964fa72-a687-487b-a7d1-805c2d199c78%2F0lmfpha_processed.png&w=3840&q=75)
Transcribed Image Text:At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost
$25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) 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 $350 in each year.
The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and
was expected to last six years, with a residual value of $2,000.
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
Journal entry worksheet
A
>
Record the year 2 depreciation expense for the machinery.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit
1
Depreciation Expense
Accumulated Depreciation, Machinery
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