A Company Purchased and Installed Machinery on January 1 at a Total

question 55

Essay

A company purchased and installed machinery on January 1 at a total cost of $93,000.Straight-line depreciation was calculated based on the assumption of a five-year life and no salvage value.The machinery was disposed of on July 1 of year four.The company uses the calendar year.
1.Prepare the general journal entry to update depreciation to July 1 in year four.
2.Prepare the general journal entry to record the sale of the machine for $27,000 cash.

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Definitions:

Rationales

Explanations or reasons for an action or belief, often used to justify decisions and behaviors.

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or at the end.

Halo Effect

A cognitive bias where an individual's overall impression of a person influences how they feel and think about that person's character.

Phi Phenomenon

A perceptual illusion in which stationary objects shown in rapid succession, such as lights flashing at certain speeds, appear to be moving.