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Business, 28.12.2019 02:31 Reggie101127
On january 1, 2020, riverbed company purchased the following two machines for use in its production process. machine a: the cash price of this machine was $52,000. related expenditures included: sales tax $1,900, shipping costs $200, insurance during shipping $60, installation and testing costs $90, and $200 of oil and lubricants to be used with the machinery during its first year of operations. riverbed estimates that the useful life of the machine is 5 years with a $5,200 salvage value remaining at the end of that time period. assume that the straight-line method of depreciation is used. machine b: the recorded cost of this machine was $180,000. riverbed estimates that the useful life of the machine is 4 years with a $9,900 salvage value remaining at the end of that time period. a) prepare the following for machine a. (round answers to o decimal places, e. g. 5,125. credit account titles are automatically indented when amount is entered. do not indent manually. if no entry is required, select "no entry" for the account titles and enter o for the amounts.) 1. the journal entry to record its purchase on january 1, 2020. 2. the journal entry to record annual depreciation at december 31, 2020. no. account titles and explanation debit credit 2.
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On january 1, 2020, riverbed company purchased the following two machines for use in its production...
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