Check Your Work-Google Chrome cation.com/hm.tpx a Co. purchases and installs a m
ID: 2539071 • Letter: C
Question
Check Your Work-Google Chrome cation.com/hm.tpx a Co. purchases and installs a machine on January 1, 2016, at a total cost of $142,800. Straight -line depreciation is taken each year for Rayy four years assuming Prepare entries a eight-year life and no salvage value. The machine is disposed of on July 1, 2020, during its fifth year of service to record the partial year's depreciation on July 1, 2020. (Round your intermediate calculations, and final answer to the nearest whole dollar.) Answer is complete but not entirely correct. No Date General Journal Debit Credit July 01, 2020 Accumulated depreciation-Machinery 35,700 Depreciation expense 35,700 Prepare entries to record the disposal under the following separate assumptions 1. The machine is sold for $71,400 cash. | & Answer is not complete No Date General Journal Debit Credit 1 July 01, 2020Gain on sale of machinery 71,400 Cash 71,400 2. An insurance settlement of $59,976 is received due to the machine's total destruction in a fire. Answer is not complete. Debit Credit No Date General Journal 59.976 1 July 01, 2020 59,976 Cash
Explanation / Answer
No. Date General Journal Debit Credit July 1, 2020 Depreciation Expense ($142,800 / 8 *6/12) $8,925 Accumulated Depreciation - Machinery $8,925 1. July 1, 2020 Cash $71,400 Machinery $71,400 2 July 1, 2020 Cash $59,976 Machinery $59,976