Essay
Prepare journal entries for the following:
(a) 1 November 2013. Purchased machinery for $93,600 with a $7,200 residual value and a six year life by paying $14,400 down and the balance with a Note Payable.(Ignore interest)
(b) 31 December 2013. Record the adjusting entry for depreciation using the straight line method to the nearest month.
(c) 1 July 2014. Sold the equipment for $81,600 cash and paid off the Note Payable.
Correct Answer:
Verified
Correct Answer:
Verified
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