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

question 96

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 discarded on July 1 of Year four due to obsolescence. 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 disposal.

---

Definitions:

Consumer Services

Services designed to meet the needs and expectations of consumers, encompassing a wide range of industries including retail, healthcare, and financial services.

Derived Demand

Demand for a good or service that arises from the demand for another good or service, for example, the demand for steel being derived from the demand for automobiles.

Industrial Products

Goods and services designed and marketed for use in production and operations, often sold to other businesses rather than end consumers.

Consumer Products

are goods sold directly to consumers for their personal or household use.