On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,794,000 Less: Accumulated depreciation 496,800 Book value I $1,297,200 Depreciation is computed at $82,800 per year on a straight-line basis. For the following 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, 2018. An insurance settlement of $593,400 was received for this casualty. Assume the settlement was received immediately.
On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200. The original cost and related accumulated depreciation at this date are as follows. Machine $1,794,000 Less: Accumulated depreciation 496,800 Book value I $1,297,200 Depreciation is computed at $82,800 per year on a straight-line basis. For the following 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, 2018. An insurance settlement of $593,400 was received for this casualty. Assume the settlement was received immediately.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter10: Long-lived Tangible And Intangible Assets
Section: Chapter Questions
Problem 22E
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Transcribed Image Text:On December 31, 2017, Ayayai Inc. has a machine with a book value of $1,297,200.
The original cost and related accumulated depreciation at this date are as follows.
Machine
$1,794,000
Less: Accumulated depreciation 496,800
Book value
I
$1,297,200
Depreciation is computed at $82,800 per year on a straight-line basis.
For the following 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, 2018. An insurance settlement
of $593,400 was received for this casualty. Assume the settlement was received
immediately.
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