On January 1, 2022, Riverbed Company purchased the following two machines for use in its production process. Machine A: Machine B: (a) 1. Prepare the following for Machine A. (Round answers to O decimal places, e.g. 5,125. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 2. The cash price of this machine was $48,500. Related expenditures also paid in cash included: sales tax $1,700, shipping costs $200, insurance during shipping $50, installation and testing costs $120, and $200 of oil and lubricants to be used with the machinery during its first year of operations. Riverbed estimates that the useful life of the machine is 5 years with a $4,750 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. 1. The recorded cost of this machine was $180,000. Riverbed estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. 2. No. Account Titles and Explanation The journal entry to record its purchase on January 1, 2022. The journal entry to record annual depreciation at December 31, 2022. Debit Credit
On January 1, 2022, Riverbed Company purchased the following two machines for use in its production process. Machine A: Machine B: (a) 1. Prepare the following for Machine A. (Round answers to O decimal places, e.g. 5,125. List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 2. The cash price of this machine was $48,500. Related expenditures also paid in cash included: sales tax $1,700, shipping costs $200, insurance during shipping $50, installation and testing costs $120, and $200 of oil and lubricants to be used with the machinery during its first year of operations. Riverbed estimates that the useful life of the machine is 5 years with a $4,750 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used. 1. The recorded cost of this machine was $180,000. Riverbed estimates that the useful life of the machine is 4 years with a $10,000 salvage value remaining at the end of that time period. 2. No. Account Titles and Explanation The journal entry to record its purchase on January 1, 2022. The journal entry to record annual depreciation at December 31, 2022. Debit Credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:On January 1, 2022, Riverbed Company purchased the following two machines for use in its production process.
Machine A:
Machine B:
(a)
1.
Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 5,125. List all debit entries before credit entries. Credit
account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the
account titles and enter O for the amounts.)
2.
The cash price of this machine was $48,500. Related expenditures also paid in cash included: sales tax $1,700,
shipping costs $200, insurance during shipping $50, installation and testing costs $120, and $200 of oil and
lubricants to be used with the machinery during its first year of operations. Riverbed estimates that the useful life of
the machine is 5 years with a $4,750 salvage value remaining at the end of that time period. Assume that the
straight-line method of depreciation is used.
1.
The recorded cost of this machine was $180,000. Riverbed estimates that the useful life of the machine is 4 years
with a $10,000 salvage value remaining at the end of that time period.
2.
No. Account Titles and Explanation
The journal entry to record its purchase on January 1, 2022.
The journal entry to record annual depreciation at December 31, 2022.
Debit
Credit
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