Certainly! Let's go through the required journal entries step by step.
Step 1: Record the purchase of the used machine on January 2.
[tex]\[
\begin{array}{|c|l|l|l|}
\hline \text{Date} & \text{General Journal} & \text{Debit} & \text{Credit} \\
\hline \text{January 02} & \text{Machine} & 178,000 & \\
\hline & \text{Cash} & & 178,000 \\
\hline
\end{array}
\][/tex]
Explanation:
- Debit the Machine account to increase asset for the purchase cost of [tex]$178,000.
- Credit the Cash account to decrease cash for the amount paid, $[/tex]178,000.
Step 2: Record the cost to wire electricity to the machine on January 3.
[tex]\[
\begin{array}{|c|l|l|l|}
\hline \text{Date} & \text{General Journal} & \text{Debit} & \text{Credit} \\
\hline \text{January 03} & \text{Machine} & 2,840 & \\
\hline & \text{Cash} & & 2,840 \\
\hline
\end{array}
\][/tex]
Explanation:
- Debit the Machine account to increase the asset for the wiring cost of [tex]$2,840.
- Credit the Cash account to decrease cash for the amount paid, $[/tex]2,840.
Step 3: Record the cost to secure the machine on January 4.
[tex]\[
\begin{array}{|c|l|l|l|}
\hline \text{Date} & \text{General Journal} & \text{Debit} & \text{Credit} \\
\hline \text{January 04} & \text{Machine} & 1,160 & \\
\hline & \text{Cash} & & 1,160 \\
\hline
\end{array}
\][/tex]
Explanation:
- Debit the Machine account to increase the asset for the securing cost of [tex]$1,160.
- Credit the Cash account to decrease cash for the amount paid, $[/tex]1,160.
After these journal entries are posted, the total cost of the machine is $182,000 (178,000 + 2,840 + 1,160). This would be used as the base amount for calculating depreciation.
