Rayya Company purchases a machine for $201,600 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $86,400 cash. (2) The machine is sold for $69,120 cash. View transaction list Journal entry worksheet < 2 Record the sale of the machinery for $86,400 cash. 3 te: Enter debits before credits. Date July 01, 2025 Cash Record entry Accumulated depreciation-Machinery General Journal Machinery Clear entry Credit 201,600 View general journal

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Chapter1: Financial Statements And Business Decisions
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Rayya Company purchases a machine for $201,600 on January 1, 2021. Straight-line depreciation is taken each year for four years
assuming a seven-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service.
Prepare entries to record the partial year's depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The
machine is sold for $86,400 cash. (2) The machine is sold for $69,120 cash.
View transaction list
Journal entry
worksheet
1
2
Record the sale of the machinery for $86,400 cash.
3
Note: Enter debits before credits.
Date
July 01, 2025 Cash
Record entry
Accumulated depreciation-Machinery
General Journal
Machinery
Clear entry
Credit
201,600
View general journal
Transcribed Image Text:Rayya Company purchases a machine for $201,600 on January 1, 2021. Straight-line depreciation is taken each year for four years assuming a seven-year life and no salvage value. The machine is sold on July 1, 2025, during its fifth year of service. Prepare entries to record the partial year's depreciation on July 1, 2025, and to record the sale under each separate situation. (1) The machine is sold for $86,400 cash. (2) The machine is sold for $69,120 cash. View transaction list Journal entry worksheet 1 2 Record the sale of the machinery for $86,400 cash. 3 Note: Enter debits before credits. Date July 01, 2025 Cash Record entry Accumulated depreciation-Machinery General Journal Machinery Clear entry Credit 201,600 View general journal
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