Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. at the beginning of the year, plummer's sports cen

At the beginning of the year, Plummer's Sports Center bought three used fitness machines from...

80.2K

Verified Solution

Question

Accounting

At the beginning of the year, Plummer's Sports Center bought three used fitness machines from Brunswick Corporation. 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
Invoice price paid for asset $ 20,400 $ 37,300 $ 22,100
Installation costs 2,300 2,000 600
Renovation costs prior to use 2,900 2,500 1,700

By the end of the first year, each machine had been operating 5,400 hours.

Required:

1. Compute the cost of each machine.

Machine A $25,600

Machine B $41,800

Machine C $24,400

2. Prepare the 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 9 years $1,300 Straight-line
B 77,000 hours 3,300 Units-of-production
C 8 years 3,100 Double-declining-balance

FILL IN THE JOURNAL ENTRY

No Transaction General Journal Debit Credit
1 1

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students