Spa Sources Corporation Purchased a Machine That Had an Original

question 119

Short Answer

Spa Sources Corporation purchased a machine that had an original cost of $60,000 and an estimated residual value of $10,000.The useful life was expected to be 8 years and straight-line depreciation is used.At the end of 2010,the book value of the machine was $35,000.Spa Sources sold the machine for $32,000 cash on October 1,2011.
Requirements:
A.Prepare the journal entry to record depreciation for 2011 up to the date of sale.
B.Prepare the journal entry to record the sale of the machine.

---

Definitions:

Collaborative Assessment

A method of evaluation where multiple parties work together to analyze performance, skills, or needs, enhancing understanding and outcomes.

Idiographic

An approach focused on studying the unique aspects of individuals or phenomena, contrasting with nomothetic, which looks for generalizable truths.

Test Validity

The degree to which a test accurately measures what it is intended to measure and can predict outcomes or performance.

Norming Group

A reference group used in psychological testing or research to establish norms or average scores against which individual scores can be compared.