Chapter 3
Long-Term Assets
116
Application Questions Group B
AP-1B (
2
)
On March 1, 2016, Lindt Corp. bought machinery for $250,000 on credit from Super Machines
Inc. Prepare the journal entry to record the transaction.
Date
Account Title and Explanation
Debit
Credit
AP-2B (
3
)
On June 1, 2013, new equipment was purchased for use in the factory. The equipment cost
$1,200,000 and has a salvage value of $180,000. The equipment has an estimated production
capacity of 800,000 units. The equipment produced the following number of units over the
past four years: 2013—224,000 units, 2014—216,000 units, 2015—208,000 units, and
2016—168,000 units. Assuming the company uses the units-of-production method, complete
the following table. Do not round the per unit cost of depreciation in your calculations.
Year
Cost of Long-Term
Asset
Depreciation
Expense
Accumulated
Depreciation
To Date
Net Book Value
