On January 1, 2010, Farmer Inc.purchased five machines at a cost of $14, 000 each.The company adopted the group (straight-line)depreciation method, using an eight-year life with a $2, 800 salvage value per machine.Correct depreciation was recorded in 2010 and 2011.On January 1, 2012, one of the machines was sold for $6, 500.On January 3, 2012, a new unrelated piece of equipment was purchased for $15, 000 with no salvage value and a six-year life.It will be depreciated using the straight-line method.
Required:
Prepare appropriate journal entries for
a.$\text { January 1, } 2012$
b. $\text { December } 31,2012 \text { to record depreciation expense }$

Question

On January 1, 2010, Farmer Inc.purchased five machines at a cost of $14, 000 each.The company adopted the group (straight-line)depreciation method, using an eight-year life with a $2, 800 salvage value per machine.Correct depreciation was recorded in 2010 and 2011.On January 1, 2012, one of the machines was sold for $6, 500.On January 3, 2012, a new unrelated piece of equipment was purchased for $15, 000 with no salvage value and a six-year life.It will be depreciated using the straight-line method.
Required:
Prepare appropriate journal entries for
 a.$\text { January 1, } 2012$
b. $\text { December } 31,2012 \text { to record depreciation expense }$

Quizplus · Accepted Answer

The Answer of On January 1, 2010, Farmer Inc.purchased five machines at a cost of $14, 000 each.The company adopted the group (straight-line)depreciation method, using an eight-year life with a $2, 800 salvage value per machine.Correct depreciation was recorded in 2010 and 2011.On January 1, 2012, one of the machines was sold for $6, 500.On January 3, 2012, a new unrelated piece of equipment was purchased for $15, 000 with no salvage value and a six-year life.It will be depreciated using the straight-line method.
Required:
Prepare appropriate journal entries for
 a.$\text { January 1, } 2012$
b. $\text { December } 31,2012 \text { to record depreciation expense }$

On January 1, 2010, Farmer Inc January 1, 2012\text { January 1, } 2012 January 1, 2012

On January 1, 2010, Farmer Inc $\text { January 1, } 2012$