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
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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
Less: Accumulated depreciation
Book value
$1,638,000
(a)
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.
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 O for the amounts. List all debit entries before
credit entries.)
Transcribed Image Text: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 Less: Accumulated depreciation Book value $1,638,000 (a) 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. 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 O for the amounts. List all debit entries before credit entries.)
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 O for the amounts. List all debit entries before
credit entries.)
Date
Aug. 31, 2026
Aug. 31, 2026
Account Titles and Explanation
(To record current depreciation.)
(To record loss of the machine.)
Debit
II
Credit
Transcribed Image Text: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 O for the amounts. List all debit entries before credit entries.) Date Aug. 31, 2026 Aug. 31, 2026 Account Titles and Explanation (To record current depreciation.) (To record loss of the machine.) Debit II Credit
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