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Required information [The following information applies to the questions displayed below.] At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $350 in each year. The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and was expected to last six years, with a residual value of $2,000. 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (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 the machinery. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal

Required information [The following information applies to the questions displayed below.] At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $350 in each year. The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and was expected to last six years, with a residual value of $2,000. 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (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 the machinery. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information [The following information applies to the questions displayed below.] At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $350 in each year. The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and was expected to last six years, with a residual value of $2,000. 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (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 the machinery. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] At the beginning of the year, Young Company bought machinery, shelving, and a forklift. The machinery initially cost $25,600 but had to be overhauled (at a cost of $1,200) before it could be installed (at a cost of $600) and finally put into use. The machinery's total life was estimated as 40,000 hours, with an estimated residual value of $1,000. The machinery was actually used 5,000 hours in year 1 and 7,000 hours in year 2. Repair costs were $350 in each year. The shelving cost $9,300 and was expected to last 5 years, with a residual value of $600. The forklift cost $10,800 and was expected to last six years, with a residual value of $2,000. 3. Prepare the journal entry to record year 2 depreciation expense for the machinery. (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 the machinery. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit Record entry Clear entry View general journal
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