You are provided with the following information for a machine that Hind Company purchased on January 1, 2021: Purchase p
Posted: Wed Apr 27, 2022 11:16 am
- You Are Provided With The Following Information For A Machine That Hind Company Purchased On January 1 2021 Purchase P 1 (34.98 KiB) Viewed 33 times
partially correct
You are provided with the following information for a machine that Hind Company purchased on January 1, 2021: Purchase price of machine $ 15,060 Salvage value $ 3,765 Useful life in years 5 Ae 1. Calculate depreciation expense for 2021 (2 points). Work: Purchase price of machine Salvage value Useful life in years 15060 3765 5 Answer: 2.259 2. Record the journal entry on December 31, 2021 to show depreciation (2 points). Depreciation Expense 2,259 Equipment 2,259 3. On December 31, 2022, Hind Company sold the machine for the following amount: $ 13,554 Record the journal entry to show 2022 depreciation (2 points). Record the journal entry to show the sale (4 points). 2022 depreciation journal entry: Loss 2,259 Equipment 2,259 Sale of machine journal entry: Equipment 15,060 Accumulated Depreciation 4,518 Loss (9,036) Cash