Chapter 3
Long-Term Assets
93
Date
Account Title and Explanation
Debit
Credit
AP-4A (
3
4
)
On July 1, 2008, Bob’s Juice Factory purchased a bottle-sealing machine for $102,000. The
machine had an estimated useful life of 10 years and is expected to have no residual value.
Assume that the company has adopted a partial-year depreciation policy, where depreciation
is taken on a monthly basis.
Required
a) Fill in the table below using the following facts:
• The company uses straight-line depreciation.
• The company's fiscal year-end is December 31.
• The company stopped using this machine on November 1, 2016, when it was traded
for a new machine.
Year
Cost of Long-Term
Asset
Depreciation
Expense
Accumulated
Depreciation
To Date
Net Book Value
