Accounting%20II%20Chapter%2010%20probs%206A%2D8A

Accounting%20II%20Chapter%2010%20probs%206A%2D8A - Problem...

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Problem 10-6A (20 minutes) 1. Jan. 2 Machinery. ............................................................ 178,000 Cash. ............................................................... 178,000 To record machinery purchase. Jan. 3 Machinery. ............................................................ 2,840 Cash. ............................................................... 2,840 To record machinery costs. Jan. 3 Machinery. ............................................................ 1,160 Cash. ............................................................... 1,160 To record machinery costs. 2. a. First year Dec. 31 Depreciation Expense—Machinery. ................... 28,000 Accumulated Depreciation—Machinery. ..... 28,000 To record depreciation [($182,000 - $14,000)/6]. b. Fifth year Dec. 31 Depreciation Expense—Machinery. ................... 28,000 Accumulated Depreciation—Machinery. ..... 28,000 To record year’s depreciation. 3. Accumulated depreciation at the date of disposal Five years' depreciation (5 x $28,000). .................... $140,000 Book value at the date of disposal Original total cost. ..................................................... $182,000 Accumulated depreciation. ....................................... (140,000
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Accounting%20II%20Chapter%2010%20probs%206A%2D8A - Problem...

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