Prompt 2. On June 1, 2021, Hines Company purchased the following machine for use in its production process. The accounta

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Prompt 2 On June 1 2021 Hines Company Purchased The Following Machine For Use In Its Production Process The Accounta 1 (38.75 KiB) Viewed 19 times

Prompt 2. On June 1, 2021, Hines Company purchased the following machine for use in its production process. The accountant that was in charge of journal entries, has left, therefore, you have been assigned to journalize the following entries, as well as calculate anual depreciation and book value, using the double declining method Machine A: The cash price of this machine was $60,000. Related expenditures included sales tax $2,750, shipping com 5100, Insurance during shipping $75, mulation and testing en 575. and 90 of oil and lubricants to be used with the machinery during its first year of operation Hines estimates that the useful life of the machine is 4 years with a 55,000 salvage value remaining at the end of that time period Prepare the following for the machine A. Record the journal entry to record its purchase and any subsequent expenditures that occurred on June 1,2021. (3 pts.) Credit Date Account The PR Dahil b. Calculate the amount of annual depreciation and book value for Hines Company using declining balance method for Year 2021 and 2022. (2 P.) Book Value 2021 Depreciation Book Value 2022 Depreciation C. In reviewing your calculations for the machine, compare this to straight-line method, and explain how the calculations would change, as well as which method would be most beneficial in recovering the assets cost in its early life, and why. (pt.)