e myutrguedul Horn My GradesACCT23019C Hil Connect apter 9

e . myutrguedul Horn My Grades-ACCT-2301-9C Hil Connect apter 9 Homework X+A O\'Connor Company ordered a machine on January 1 at a purchase price of $30,000. On the date of delivery, January 2, the company paid $8,000 on the machine and signed a long tem note payable for the O\'Connor pald cash for balance On January 3, it paid $300 for freight on the macine On nstallation costs relating to the machine amouniting to $1.800 On December 31 (he end of the uvelul tte ot 10 years and an estimated residual value of 1.inicate the efects (accounts armourts and-for increase-for decreano, ef each tansae on con lanuary 1, 2, 3, and 5) on the accounting equation (Eer any decreases to account balances with a 2 Compute The the mchi G H J

Solution

Req 1 Date Assets                = Liabilities          + Stockholder\'s equity 1-Jan No effect 2-Jan Cash Account ($8000) Notes Payable $ 22000 0 Machinery $ 30000 3-Jan Cash Account ($300) 0 0 Machinery $ 300   5-Jan Cash Account ($1800) 0 0 Machinery $1800 Req 2: Acquisition cost: Cost of Machinery $30,000 Add: Freight cost 300 Add: Installation cost $1,800 Total acquisition cost 32,100 Req 3: Acquisition cost of machinery 32100 Less: Salvage value -3200 Depreciable amount 28,900 Divide: Life 10 Annual depreciation 2890 Req 4. Machinery at cost 32100 Less: Accumulated dep 5,780 (2890*2 years) Machinery (net) 26,320