Prepare all necessary journal entries for 2024,2025 , and 2026 related to each of the following scenarios: (a) On January 1, 2024, Crane Ltd. pu chased a piece of machinery for $39.000. At the time, management determined that the machinery would have a residual value of $4,800 at the end of its 10 -year life. Crane has a December 31 year end and uses the straight-line depreciation method. (Record entries in the order displayed in the problem statement. Credit account titles are. automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. List all debit entries before credit entries.)
2024:
Jan 1, 2024: Machinery 39,000
Cash (or Accounts Payable) 39,000
(To record the purchase of machinery)
Dec 31, 2024: Depreciation Expense 3,360
Accumulated Depreciation - machinery 3,360
(To record depreciation expense for the year)
2025:
Dec 31, 2025: Depreciation Expense 3,360
Accumulated Depreciation - machinery 3,360
(To record depreciation expense for the year)
2026:
Dec 31, 2026: Depreciation Expense 3,360
Accumulated Depreciation - machinery 3,360
(To record depreciation expense for the year)
2024:
Jan 1:
Debit: Machinery $39,000
Credit: Cash $39,000 (To record the purchase of machinery)
Dec 31:
Debit: Depreciation Expense $3,420
Credit: Accumulated Depreciation-Machinery $3,420 (To record annual depreciation of the machinery)
2025:
Dec 31:
Debit: Depreciation Expense $3,420
Credit: Accumulated Depreciation-Machinery $3,420
2026:
Dec 31:
Debit: Depreciation Expense $3,420
Credit: Accumulated Depreciation-Machinery $3,420