On December 31, 2025, Sunland Inc. has a machine with a book value of $1,184,400. The original cost and related accumulated depreciation at this date are as follows:- **Machine:** $1,638,000- **Less: Accumulated depreciation:** $453,600- **Book value:** $1,184,400Depreciation is computed at $75,600 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 record the transaction. Ensure 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, 2026. An insurance settlement of $541,800 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 0 for the amounts. List all debit entries before credit entries.*) ### Transaction Record for Machine Loss on August 31, 2026A fire completely destroys the machine on August 31, 2026. An insurance settlement of $541,800 was received for this casualty. Assume the settlement was received immediately. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)#### Journal Entry| Date | Account Titles and Explanation | Debit | Credit ||-------------|-------------------------------------|-------|--------|| Aug. 31, 2026 | | | || | (To record current depreciation.) | | || Aug. 31, 2026 | | | || | | | || | | | || | (To record loss of the machine.) | | |**Instructions:** Fill in the appropriate account titles and amounts for the debit and credit columns. Make sure to list all debit entries before any credit entries, following standard accounting procedures.

When the book value of the asset is more than the cash received at the time of sale of the asset,…

has a machine with a book value of $1,184,400. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1,638,000 453,600 $1,184,400 Depreciation is computed at $75,600 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 record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

has a machine with a book value of $1,184,400. The original cost and related accumulated depreciation at this date are as follows. Machine Less: Accumulated depreciation Book value $1,638,000 453,600 $1,184,400 Depreciation is computed at $75,600 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 record the transaction. Make sure that depreciation entries are made to update the book value of the machine prior to its disposal.

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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