At the beginning of the year, Plummer’s Sports Center bought three used fitness machines from Advantage, Inc. The machines immediately were overhauled, installed, and started operating. The machines were different; therefore, each had to be recorded separately in the accounts.
Machine A Machine B Machine C
Amount paid for asset $ 11,000 $ 30,000 $ 8,000
Installation costs 500 1,000 500
Renovation costs prior to use 2,500 1,000 1,500
By the end of the first year, each machine had been operating 4,800 hours.
Required:
1. Compute the cost of each machine.
Total Cost
Machine A
Machine B
Machine C
Required:
2. Prepare one entry to record depreciation expense at the end of year 1, assuming the following:
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Estimates
Machine Life Residual Value Depreciation Method
A 5 years $1,000 Straight-line
B 60,000 hours 2,000 Units-of-production
C 4 years 1,500 Double-declining-balance

Please see below

Explanation:

                                                 Machine A Machine B Machine C

Amount paid for asset            $ 11,000   $ 30,000 $ 8,000

Installation costs                           500    1,000          500

Renovation costs prior to use     2,500 1,000        1,500

total cost                                  $14,000  $32,000  $10,000

Machine Life Residual Value Depreciation Method

A  5 years       $1,000           Straight-line

B 60,000 hours 2,000        Units-of-production

C 4 years      1,500      Double-declining-balance

for machne A, using Straight line Depreciation

Straight line Depreciation = total cost of asset - residual value /useful life

=14,000-1000/5= $,2,600

for machne b, using units of operation with production time = 4800

units of operation Depreciation= total cost of asset - residual value /useful life x Production time = ((32,000-2000)/60,000) x 4800= $2400

for machne b, using Double-declining-balance

Double-declining-balance depreciation = (cost of asset - accumulated depreciation/ useful life of asset) x 2 =(( $10,000- 0)/4) x2 = $5000

Journal for machine A at end of year 1

Account                                Debit        Credit

depreciation expense       $2600

accumulated depreciation                   $2,600

Journal for machine B at end of year 1

Account                                Debit        Credit

depreciation expense       $2400

accumulated depreciation                   $2,400

Journal for machine C at end of year 1

Account                                Debit          Credit

depreciation expense       $5,000

accumulated depreciation                    $5,000

answer; post closing trial balance;