Vita Water purchased a used machine for $121,400 on January 2, 2023. It was repaired the next day at a cost of $9,163 and installed on a new platform that cost $1,637. The company predicted that the machine would be used for six years and would then have a $23,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2023. On September 30, 2028, it was retired. Required: 1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.

Vita Water purchased a used machine for $121,400 on January 2, 2023. It was repaired the next day at a cost of $9,163 and installed on a new platform that cost $1,637. The company predicted that the machine would be used for six years and would then have a $23,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2023. On September 30, 2028, it was retired. Required: 1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.

Name: Vita Water purchased a used machine for $121,400 on January 2, 2023.
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Description: Vita Water purchased a used machine for $121,400 on January 2, 2023. It was repaired the next day at a cost of $9,163 and installedon a new platform that cost $1,637. The company predicted that the machine would be used for six years and would then

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 7E: Loban Company purchased four cars for 9,000 each and expects that they will be sold in 3 years for...

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