[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) 500 500 Renovation costs prior to use 2,500 1,500 By the end of the first year, each machine had been operating 4,800 hours. Machine A B с 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. View transaction list ESTIMATES Life 5 years. 60,000 hours 4 years < 1 Residual Value $1,000 2,000 1,500 Journal entry worksheet Machine A $11,000 Machine B Machine C $30,000 $8,000 1,000 1,000 Straight-line Record the depreciation expense for year 1. Depreciation Method Units-of-production Double-declining-balance

[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) 500 500 Renovation costs prior to use 2,500 1,500 By the end of the first year, each machine had been operating 4,800 hours. Machine A B с 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. View transaction list ESTIMATES Life 5 years. 60,000 hours 4 years < 1 Residual Value $1,000 2,000 1,500 Journal entry worksheet Machine A $11,000 Machine B Machine C $30,000 $8,000 1,000 1,000 Straight-line Record the depreciation expense for year 1. Depreciation Method Units-of-production Double-declining-balance

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, Almond Factory 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 $10,400 940 1,020 790 7. Prepare the journal entry to record year 2 double-declining balance depreciation expense for Machine C, which has a cost of $26,800, an estimated life of 10 years, and $1,400 residual value. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A. Record the year 2 depreciation expense for Machine C.
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