Problem 9-16A Disposal of PPE LO1, 2, 3, 6
Vita Water purchased a used machine for $116,900 on January 2,2023 . It was repaired the next day at a cost of $4,788 and installed on a new platform that cost $1,512. The company predicted that the machine would be used for six years and would then have a $20,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31, 2023. On September 30, 2028, it was retired.
Required:
Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.
Journal entry worksheet
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Problem 9-16A Disposal of PPE LO1,2,3,6
Vita Water purchased a used machine for $116,900 on January 2,2023. It was repaired the next day at a cost of $4,788 and
then have a $20,720 residual value. Depreciation was to be charged on a straight-line basis to the nearest whole month. A full year's depreciation was recorded on December 31,2023.On September 30,2028,it was retired.
Required: 1. Prepare journal entries to record the purchase of the machine, the cost of repairing it, and the installation. Assume that cash was paid.
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Journal entry worksheet
