[The following information applies to the questions displayed below.] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
[The following information applies to the questions displayed below.] At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
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, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an
established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were
overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the
accounts.
Invoice price paid for asset
Shipping costs (paid by Plummer)
Renovation costs prior to use
By the end of the first year, each machine had been operating 6,100 hours.
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.
Machine
A
B
с
Life
9 years
69,000 hours
8 years
View transaction list
ESTIMATES
1
Residual Value
$1,100
3,400
1,800
Journal entry worksheet
Machine A Machine B Machine C
$21,200 $32,100 $16,800
2,200
2,800
1,200
2,900
3,000
2,400
Depreciation Method
Straight-line
Units-of-production
Double-declining-
balance
Record the depreciation expense for year 1.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b66953-d8c0-491f-82b9-53ac9723ea16%2F55a3b483-52c2-47c3-85ec-c0db925b8bcf%2Fjl828up_processed.png&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an
established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were
overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the
accounts.
Invoice price paid for asset
Shipping costs (paid by Plummer)
Renovation costs prior to use
By the end of the first year, each machine had been operating 6,100 hours.
2. Prepare the entry to record depreciation expense at the end of Year 1, assuming the following.
Note: Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in
the first account field.
Machine
A
B
с
Life
9 years
69,000 hours
8 years
View transaction list
ESTIMATES
1
Residual Value
$1,100
3,400
1,800
Journal entry worksheet
Machine A Machine B Machine C
$21,200 $32,100 $16,800
2,200
2,800
1,200
2,900
3,000
2,400
Depreciation Method
Straight-line
Units-of-production
Double-declining-
balance
Record the depreciation expense for year 1.
![Required information
[The following information applies to the questions displayed below.]
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an
established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were
overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the
accounts.
Required:
1. Compute the cost of each machine.
Invoice price paid for asset
Shipping costs (paid by Plummer)
Renovation costs prior to use
By the end of the first year, each machine had been operating 6,100 hours.
Machine A
Machine B
Machine C
Total Cost
$
Machine A
$21, 200
2,200
2,900
5
Machine B Machine C
$16,800
$32, 100
2,800
3,000
1,200
2,400](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5b66953-d8c0-491f-82b9-53ac9723ea16%2F55a3b483-52c2-47c3-85ec-c0db925b8bcf%2F5lxmcv_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Primo Fitness, an
established supplier of used, new and refurbished gym equipment in Southern California. The machines immediately were
overhauled and started operating. The machines were different; therefore, each had to be recorded separately in the
accounts.
Required:
1. Compute the cost of each machine.
Invoice price paid for asset
Shipping costs (paid by Plummer)
Renovation costs prior to use
By the end of the first year, each machine had been operating 6,100 hours.
Machine A
Machine B
Machine C
Total Cost
$
Machine A
$21, 200
2,200
2,900
5
Machine B Machine C
$16,800
$32, 100
2,800
3,000
1,200
2,400
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