Question

On January 1, 2018 ALTA S.A. acquires a machinery from BAJA S.A. in exchange for a note that does not accrue interest for a value of ¢ 900,000, whose maturity date is December 31, 2020. The fair value of the machinery is ¢ 800,000. The machinery acquired was assigned a useful life of 4 years from the month of purchase, with no residual value and is depreciated using the straight-line method. The company makes annual closings on December 31. REQUIRED: 1- Complete an amortization table 2- Complete the respective entries for the year ended December 31, 2018 regarding the document payable and the machinery

          On January 1, 2018 ALTA S.A. acquires a machinery from BAJA S.A. in exchange for a note that
does not accrue interest for a value of ¢ 900,000, whose maturity date is December 31, 2020.
The fair value of the machinery is ¢ 800,000. The machinery acquired was assigned a useful life
of 4 years from the month of purchase, with no residual value and is depreciated using the
straight-line method. The company makes annual closings on December 31.
REQUIRED:
1- Complete an amortization table
2- Complete the respective entries for the year ended December 31, 2018 regarding the
document payable and the machinery

Show more…

On January 1, 2018 ALTA S.A. acquires a machinery from BAJA S.A. in exchange for a note that
does not accrue interest for a value of ¢ 900,000, whose maturity date is December 31, 2020.
The fair value of the machinery is ¢ 800,000. The machinery acquired was assigned a useful life
of 4 years from the month of purchase, with no residual value and is depreciated using the
straight-line method. The company makes annual closings on December 31.
REQUIRED:
1- Complete an amortization table
2- Complete the respective entries for the year ended December 31, 2018 regarding the
document payable and the machinery

Added by Jeremy B.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert T. L.

Step 1

Since the machinery has a useful life of 4 years and no residual value, the annual depreciation expense would be the cost of the machinery divided by its useful life. Annual depreciation expense = Cost of machinery / Useful life Annual depreciation expense = Show more…

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On January 1, 2018 ALTA S.A. acquires a machinery from BAJA S.A. in exchange for a note that does not accrue interest for a value of c 900,000, whose maturity date is December 31, 2020. The fair value of the machinery is c 800,000. The machinery acquired was assigned a useful life of 4 years from the month of purchase, with no residual value and is depreciated using the straight-line method. The company makes annual closings on December 31. REQUIRED: 1- Complete an amortization table 2- Complete the respective entries for the year ended December 31, 2018 regarding the document payable and the machinery

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