Do not give answer in image On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in installation costs. Themachinery has an estimated useful life of 15 years and a residual value of $11,960. The company uses the straight-line method ofdepreciation. At the end of 2022, Ayayai recorded depreciation and assessed the asset, determining a recoverable amount of$161,200. Ayayai sold the equipment to Voilex Corporation on June 30, 2023, for $158,600.Prepare the necessary entries assuming Ayayai has a December 31 year-end. (Credit account titles are automatically indented when theamount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List alldebit entries before credit entries. Round answers to O decimal places, e.g. 5,275. Record journal entries in the order presented in the problem.)DateVAccount Titles and ExplanationMachineryDepreciation ExpenseAccumulated Depreciation - Machinery(To record depreciation expense)EquipmentEquipment(To record depreciation expense)(To record loss on impairment)(To record depreciation expense)(To record depreciation expense)(To record disposal of machinery)DebitCredit

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Description: Do not give answer in image On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in installation costs. Themachinery has an estimated useful life of 15 years and a residual value of $11,960. The compan

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On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11,960. The company uses the straight-line method of depreciation. At the end of 2022, Ayayai recorded depreciation and assessed the asset, determining a recoverable amount of

On January 1, 2021, Ayayai Company purchased on credit machinery costing $193,500 and incurred $6,605 in installation costs. The machinery has an estimated useful life of 15 years and a residual value of $11,960. The company uses the straight-line method of depreciation. At the end of 2022, Ayayai recorded depreciation and assessed the asset, determining a recoverable amount of

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter11: Depreciation, Depletion, Impairment, And Disposal

Section: Chapter Questions

Problem 8P: Kam Company purchased a machine on January 2, 2019, for 20,000. The machine had an expected life of...

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