4. 20 years ago, Mr. Mohan use the machine but purchased it on April 01, 2010, for2,80,000 and spent 10,000 on its carriage and 10,000 on its installation. Itis estimated that its working life is 10 years and after 10 years its scrap value willbe € 20,000.a. Prepare Machine and Depreciation accounts for the first four years by providingdepreciation on a straight-line method. Accounts are closed on March 31st everyyear.b. Prepare Machine account, Depreciation account, and Provision for depreciationaccount (or accumulated depreciation account) for the first four years byproviding depreciation using the diminishing line method. Accounts are closed onMarch 31st every year.

The objective of the question is to prepare the Machine and Depreciation accounts for the first four…

Answered: 4. 20 years ago, Mr. Mohan use the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Bonita Industries purchased a depreciable asset for $591000 on April 1, 2018. The estimated salvage value is $51000, and the estimated total useful life is 5 years. The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2021 when the asset is sold? $297000 $333000 $288000 $252000
Can I please get some help and a explaination of how on this question?(5.10) Onslow Company purchased a used machine for $240,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.\\ Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date General Journal Debit Credit…
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