Ming Company bought a machine on 1 July 2019 for $90,000. It incurred an additional $2,000 in freight charges to import the machine to Singapore. Assume these are paid in cash. The machine has a useful life of 4 years and a residual value of $10,000. The company adopts the straight-line method of depreciation and the financial year ends on 31 December. Show workings. (a) Present the journal entries for the years 2019 and 2020. Narrations are not required. (b) On 1 April 2021, due to constant machine breakdowns, the machine was sold for $60,000. Present the gain/ loss on the sale of the machine. Show workings
Ming Company bought a machine on 1 July 2019 for $90,000. It incurred an additional $2,000 in freight charges to import the machine to Singapore. Assume these are paid in cash. The machine has a useful life of 4 years and a residual value of $10,000. The company adopts the straight-line method of depreciation and the financial year ends on 31 December. Show workings. (a) Present the journal entries for the years 2019 and 2020. Narrations are not required. (b) On 1 April 2021, due to constant machine breakdowns, the machine was sold for $60,000. Present the gain/ loss on the sale of the machine. Show workings
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Ming Company bought a machine on 1 July 2019 for $90,000. It incurred an additional
$2,000 in freight charges to import the machine to Singapore. Assume these are paid in
cash. The machine has a useful life of 4 years and a residual value of $10,000.
The company adopts the straight-line method of
on 31 December. Show workings.
(a) Present the
required.
(b) On 1 April 2021, due to constant machine breakdowns, the machine was sold for
$60,000. Present the gain/ loss on the sale of the machine. Show workings
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