The following data relate to the Machinery account of Novak, Inc. at December 31, 2017.
Accum. depr through
*In the year an asset is purchased, Novak, Inc. does not record any depreciation expense on the asset.
In the year an asset is retired or traded in, Novak, Inc. takes a full year’s depreciation on the asset.
The following transactions occurred during 2018.
On May 5, Machine A was sold for $15,080 cash. The company’s bookkeeper recorded this
retirement in the following manner in the cash receipts journal.
Machinery (Machine A)
On December 31, it was determined that Machine B had been used 2,436 hours during 2018.
On December 31, before computing depreciation expense on Machine C, the management of
Novak, Inc. decided the useful life remaining from January 1, 2018, was 10 years.
On December 31, it was discovered that a machine purchased in 2017 had been expensed