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Problem 2: (10 marks) VERSION 3 On January 1, 2016, Aylmer Inc purchased a new...

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Accounting

Problem 2: (10 marks) VERSION 3 On January 1, 2016, Aylmer Inc purchased a new machine. The invoice price for the machine was 310,000 Aylmer incurred the following costs related to the machine: Shipping and installation of the machine 16,000 Cost of testing the machine 22,000 The machine is expected to have a useful life of 15 years and is expected to have no residual value. On April 2, 2018, Aylmer had to replace some belts on the machine. The belts cost $1,350. On January 1, 2021; Aylmer had to make some additions to the machine in the amount of 123,000 The additions did not change the useful life of the machine. Aylmer uses the straight-line method of calculating depreciation. Aylmer has a December 31 year end and recorded depreciation annually. Instructions: Prepare the appropriate entry for the following dates: a) Prepare the journal entry at January 1, 2016. Date Description Dr Cr b) Prepare the required journal entry at December 31, 2016. Date Description Dr Cr c) Prepare the required journal entry at April 2, 2018 Date Description Dr Cr d) Prepare the required journal entry at January 1, 2021 Date Description Dr Cr e) Prepare the required journal entry at December 31, 2021 Date Description Dr Cr

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