Homework Help is Here – Start Your Trial Now!
Business
Accounting
ne ulated depreciation $1,360,000 504,000 $856,000 lation is calculated at $84,000 per year on a straight-line

ne ulated depreciation $1,360,000 504,000 $856,000 lation is calculated at $84,000 per year on a straight-line

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Vinubhai 

On December 31, 2022, Shamrock Inc. owns a machine with a carrying amount of $856,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine Accumulated depreciation Depreciation is calculated at $84,000 per year on a straight-line basis. A set of independent situations follows. For each situation, prepare the journal entry for Shamrock to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Shamrock uses IFRS for financial statement purposes. (a) $1,360,000 504,000 $856,000 A fire completely destroyed the machine on August 31, 2023. An insurance settlement of $426,000 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation August 31, 2023 August 31, 2023 (To record depreciation on machinery) (To record disposal of machinery) Debit Credit 11
Transcribed Image Text:On December 31, 2022, Shamrock Inc. owns a machine with a carrying amount of $856,000. The original cost and accumulated depreciation for the machine on this date are as follows: Machine Accumulated depreciation Depreciation is calculated at $84,000 per year on a straight-line basis. A set of independent situations follows. For each situation, prepare the journal entry for Shamrock to record the transaction. Ensure that depreciation entries are recorded to update the machine's carrying amount before its disposal. Assume that Shamrock uses IFRS for financial statement purposes. (a) $1,360,000 504,000 $856,000 A fire completely destroyed the machine on August 31, 2023. An insurance settlement of $426,000 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 O for the amounts. List all debit entries before credit entries.) Date Account Titles and Explanation August 31, 2023 August 31, 2023 (To record depreciation on machinery) (To record disposal of machinery) Debit Credit 11
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Accounting for Property, Plant and Equipment
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS