Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 5 5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $44,100, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A Record the year 2 depreciation expense for Machine B. Note: Enter debits before credits. Transaction 1 Record entry $9,500 850 750 610 General Journal Clear entry Debit Credit View general journal
Required information PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3] [The following information applies to the questions displayed below.] At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below. Cost of the asset Installation costs Renovation costs prior to use Repairs after production began PA9-1 (Algo) Part 5 5. Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $44,100, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet A Record the year 2 depreciation expense for Machine B. Note: Enter debits before credits. Transaction 1 Record entry $9,500 850 750 610 General Journal Clear entry Debit Credit View general journal
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![### Required Information
**PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3]**
[The following information applies to the questions displayed below.]
At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below.
- Cost of the asset: $9,500
- Installation costs: $850
- Renovation costs prior to use: $750
- Repairs after production began: $610
---
**PA9-1 (Algo) Part 5**
**5.** Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $44,100, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. **(Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)**
**Journal Entry Worksheet**
- Record the year 2 depreciation expense for Machine B.
**Note:** Enter debits before credits.
| Transaction | General Journal | Debit | Credit |
|-------------|-----------------------------|-------|--------|
| 1 | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
- **Buttons:**
- Record entry
- Clear entry
- View general journal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b3f7f60-ea7d-412d-bfab-14e1e3d92302%2F3a2dfe85-48f9-4062-8165-f86ff793c27e%2Fhgf2vsi_processed.png&w=3840&q=75)
Transcribed Image Text:### Required Information
**PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods [LO 9-2, LO 9-3]**
[The following information applies to the questions displayed below.]
At the beginning of the year, Daffodil Company bought three used machines. The machines immediately were overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in the accounts. Details for Machine A are provided below.
- Cost of the asset: $9,500
- Installation costs: $850
- Renovation costs prior to use: $750
- Repairs after production began: $610
---
**PA9-1 (Algo) Part 5**
**5.** Prepare the journal entry to record year 2 units-of-production depreciation expense for Machine B, assuming a capitalized cost of $44,100, an estimated life of 30,000 hours, $4,500 residual value, and actual year 2 use of 8,000 hours. **(Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)**
**Journal Entry Worksheet**
- Record the year 2 depreciation expense for Machine B.
**Note:** Enter debits before credits.
| Transaction | General Journal | Debit | Credit |
|-------------|-----------------------------|-------|--------|
| 1 | | | |
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |
- **Buttons:**
- Record entry
- Clear entry
- View general journal
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