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Solve exercise 16A-1 from text book. Record the transactions (all paid in cash except on March 24) in the general journal of Orange Company.
sA Whar is the book value of the old machine? What is the gain a Provide a journal entry to record the exchange. eTax Nethod record the exchange. s Ein Exercise 8 the income tax method was used, prepare the journal entry to Exercises Set A Blue Company incurred the following expenditures to buy a new machine + Invoice, $28,000 less 9% cash discount. Freight charges, $490 Assembly charges, $1,100 Special base to support machine, ss08. Machine dropped and repaired, $350. What is the actual cost of the machine? From the following, prepare depreciation schedules for the first 2 years fo
Expert Answer
| Actual cost of machine | ||
| cash price | 28000*(1-.09) | 25480 |
| freight charges | 490 | |
| assembly charges | 1100 | |
| cost of machine | 27070 |
cost of machine = cash price+ freight charges paid+assembly charges
special base of support machine and repair charges are not part of cost of machine
