E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4 200
E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight- Line Depreciation) LO8-2, 8-3 [The following information applies to the questions displayed below.] During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery, January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months. On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an estimated useful life of 10 years and an estimated residual value of $4 200
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.2: Calculating Depreciation Expense
Problem 1OYO
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E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight-
Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery,
January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months.
On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine
amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the
end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an
estimated useful life of 10 years and an estimated residual value of $4,200.
E8-4 Part 5
5. What would be the net book value of the machine at the end of Year 2? (Amounts to be deducted should be indicated by a minus
sign.)
Net book value of machine at end of Year 2
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E8-4 (Algo) Determining Financial Statement Effects of an Asset Acquisition and Depreciation (Straight-
Line Depreciation) LO8-2, 8-3
[The following information applies to the questions displayed below.]
During Year 1, Ashkar Company ordered a machine on January 1 at an invoice price of $23,000. On the date of delivery,
January 2, the company paid $6,000 on the machine, with the balance on credit at 9 percent interest due in six months.
On January 3, it paid $600 for freight on the machine. On January 5, Ashkar paid installation costs relating to the machine
amounting to $2,800. On July 1, the company paid the balance due on the machine plus the interest. On December 31 (the
end of the accounting period), Ashkar recorded depreciation on the machine using the straight-line method with an
estimated useful life of 10 years and an estimated residual value of $4,200.
E8-4 Part 5
5. What would be the net book value of the machine at the end of Year 2? (Amounts to be deducted should be indicated by a minus
sign.)
Net book value of machine at end of Year 2
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