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.

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Definitions:

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The 42nd President of the United States, William Jefferson Clinton, who served from 1993 to 2001, associated with numerous policies on economy, health, and international relations.

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