1. Business
  2. Accounting
  3. 12 25 points a company purchased and installed a machine...

Question: 12 25 points a company purchased and installed a machine...

Question details

12. (25 Points) A company purchased and installed a machine on January 1, 2015, at a total cost of $72,000. Straight-line deprecia tion was calculated based on the assumption of a five-year life and no salvage value. The machine was disposed of on July 31, 2018 depreciation has been done for all periods prior to January 1, 2015). b. Prepare the general journal entry to record the disposal of the machine under each of these three independent situations: (1) The machine was sold for $22,000 cash. (2) The machine was sold for $15,000 cash. (3) The machine was totally destroyed in a fire and the insurance company settled the claim for $18,000 cash. Answer: a. July 31 July 31 b.(2) July 31 b.(3) July 31
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution