Question Three :ABC industries bought a machine costing BD 255,000 on 31 December 2012 with a salvagevalue BD 5,000. The machine has a useful life of 10 years as per the technical team report. Thecompany decided to sold the machine on July 1, 2020 for BD 100,000.Required:1. Prepare the journal entry to record the update depreciation to July 1, 2020.2. Prepare the journal entry to record the machine's disposal.

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Description: Question Three :ABC industries bought a machine costing BD 255,000 on 31 December 2012 with a salvagevalue BD 5,000. The machine has a useful life of 10 years as per the technical team report. Thecompany decided to sold the machine on July 1, 2020 f

Cost of machine = BD 255,000 Salvage Value = BD 5,000 Estimated useful life = 10 years Annual…

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ABC industries bought a machine costing BD 255,000 on 31 December 2012 with value BD 5,000. The machine has a useful life of 10 years as per the technical team company decided to sold the machine on July 1, 2020 for BD 100,000. Required: I. Prepare the journal entry 2. Prepare the joumal entry to record the machine's disposal. record the update depreciation to July 1, 2020.

ABC industries bought a machine costing BD 255,000 on 31 December 2012 with value BD 5,000. The machine has a useful life of 10 years as per the technical team company decided to sold the machine on July 1, 2020 for BD 100,000. Required: I. Prepare the journal entry 2. Prepare the joumal entry to record the machine's disposal. record the update depreciation to July 1, 2020.

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.5E: Change in Estimate Assume that Bloomer Company purchased a new machine on January 1, 2016, for...

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