Essay
Spa Sources Corporation purchased a machine that had an original cost of $60,000 and an estimated residual value of $10,000.The useful life was expected to be 8 years and straight-line depreciation is used.At the end of 2019,the book value of the machine was $35,000.Spa Sources sold the machine for $32,000 cash on October 1,2020.
A.Prepare the journal entry to record depreciation for 2020 up to the date of sale.
B.Prepare the journal entry to record the sale of the machine.
Correct Answer:
Verified
A.
Computations:
($60,000 - $10,000)÷ ...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
Computations:($60,000 - $10,000)÷ ...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q122: Under what conditions would a company most
Q123: Gains and losses on disposal of a
Q124: Lincoln Restaurants reported net income in 2019
Q125: Which of the following statements is incorrect?<br>A)Replacement
Q126: During 2019,a company purchased a mine at
Q127: Amanda Company purchased a computer that cost
Q128: Smith Company exchanges assets to acquire a
Q129: Which of the following is true when
Q130: Williams Company purchased a machine costing $25,000
Q132: The first step in recording the disposal