Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. solaf company acquired the following machine on ju

Solaf Company acquired the following machine on July 2,2010: Jan. 2,2011 purchased machine...

60.1K

Verified Solution

Question

Accounting

Solaf Company acquired the following machine on July 2,2010:
Jan. 2,2011 purchased machine (No.103) for $60000, estimated service 10 years, and estimated salvage value $5000.
May 1.2012 sold Machine (No.100) for $23000 and replaced it with Machine No.104 which purchased for $54000 and has estimated salvage value at the end cight years.
October 1,2013trading Machine No.102 for new machine No.105 paying $45000 in cash and receiving trade-in allowance (equal to market value) of $10000. Machine No.105 estimated life of 10 years with salvage value of $6000.
Required
A) Compute and record depreciation on the machines for years 2011,2012,2013. The company uscs straight line method for all machinc except machine No.101 it uses Sum-ycar-digit.
. Prepare journal entries for transaction during 2011,2012,2013.
image

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