The following information relates to R-U Ready Company, a publicly traded company: R. U. Ready acquired Machine...

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Accounting

The following information relates to R-U Ready Company, apublicly traded company:
R. U. Ready acquired Machine B on 1/1/13 by signing a 9%installment note to be paid in 5 equal installments of $65,000.Each payment is due on 12/31, with the first payment due 12/31/13.The useful life of Machine B is 8 years with no residual value.Assume double declining balance depreciation.
Requirement:
Present the accounts and dollar amounts that would appear oncomparative balance sheets and income statements for the yearsending 12/31/16 and 12/31/15.
List all accounts and dollar amounts. Round dollar amounts tothe nearest dollar. You do not need to includecash.
For the Classification (Class) column of the Balance Sheetuse:
A for Asset
L for Liability
E for Equity
For the Classification (Class) column of the Income Statementuse:
R for Revenue
E for Expense

Answer & Explanation Solved by verified expert

3.8 Ratings (617 Votes)

Cost of the asset Annuity x 1 1 1r n r 65000 x 1 1 109 5 009 65000 x 38897 252830 Double declining rate of depreciation 100 8 years 2 25 Balance Sheet 123116 123115 Asset Cost 252830 See Answer

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