Rayya Company purchases a machine for $126,000 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $63,000 cash. (2) The machine is sold for $52,920 cash.
Rayya Company purchases a machine for $126,000 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a eight-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year’s depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $63,000 cash. (2) The machine is sold for $52,920 cash.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Rayya Company purchases a machine for $126,000 on January 1, 2021. Straight-line
Prepare entries to record the partial year’s depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $63,000 cash. (2) The machine is sold for $52,920 cash.
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