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English, 04.03.2021 17:10 krlx

JK Co. bought a heavy duty machinery for its production process on July 1, 2008 at a price of $ 200,000 with credit terms of 2/10, n/30 and paid the amount due on 9th July 2008. In order to purchase this machinery, JK has to incur the following additional expenses on1st July 2008. Sales tax 15 % Freight charges 25,000 Transportation from railway to the JK Factory 3,000 Installation charges 8,000 It is the company policy to depreciate the machinery over the 10 years. This machine has a scrape value of $ 10,000. Straight line method of depreciation is to be used for charging the depreciation. JK closes its accounting year on December 31 each year.

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JK Co. bought a heavy duty machinery for its production process on July 1, 2008 at a price of $ 200,...

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