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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
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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