Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round percentage to 1 decimal place, for e.g. 40.1 and Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Mar. 20 Mar. 24 Mar. 29 Machinery X Date Account Titles and Explanation Machinery Y Cash eTextbook and Media List of Accounts Dec. 31 Date Account Titles and Explanation Debit Debit Credit Prepare the journal entry to record the depreciation expense to December 31, 2020, for each machine. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit 202,000 Credit Credit
Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round percentage to 1 decimal place, for e.g. 40.1 and Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Mar. 20 Mar. 24 Mar. 29 Machinery X Date Account Titles and Explanation Machinery Y Cash eTextbook and Media List of Accounts Dec. 31 Date Account Titles and Explanation Debit Debit Credit Prepare the journal entry to record the depreciation expense to December 31, 2020, for each machine. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Debit 202,000 Credit Credit
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 44P
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:On March 20, 2020, Fine Touch Corporation purchased two machines at auction for a combined total cost of $202,000. The machines
were listed in the auction catalogue at $110,000 for machine X and $155,000 for machine Y. Immediately after the auction, Fine Touch
had the machines professionally appraised so it could increase its insurance coverage. The appraisal put a fair value of $106,650 on
machine X and $130,350 on machine Y.
On March 24, Fine Touch paid a total of $5,000 in transportation and installation charges for the two machines. No further
expenditures were made for machine X, but $6,700 was paid on March 29 for improvements to machine Y. On March 31, 2020, both
machines were ready to be used.
The company expects machine X to last five years and to have a residual value of $3,000 when it is removed from service, and it
expects machine Y to be useful for eight more years and have a residual value of $14,950 at that time. Due to the different
characteristics of the two machines, different depreciation methods will be used for them: machine X will be depreciated using the
double-diminishing-balance method and machine Y using the straight-line method.
Prepare the journal entry to record the purchase of the machines, indicating the initial cost of each. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. Round percentage to 1 decimal place, for e.g. 40.1 and Round
answers to the nearest whole dollar, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Date Account Titles and Explanation
Mar. 20
Mar. 24
Mar. 29
Machinery X
Date Account Titles and Explanation
Machinery Y
Cash
eTextbook and Media
List of Accounts
Dec. 31
Date Account Titles and Explanation
eTextbook and Media
Debit
List of Accounts
Debit
Prepare the journal entry to record the depreciation expense to December 31, 2020, for each machine. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. Round answers to the nearest whole dollar, e.g. 5,275. If no
entry is required, select "No Entry" for the account titles and enter O for the amounts.)
Credit
Debit
202.000
Credit
Credit
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