Alfa SpA, in 2020 purchased a machinery paying 50,000 euros. (1) Record and journalize the purchase transaction and (ii) method considering a residual useful life of 5 years. (help yourself creating a...

Extracted text: Alfa SpA, in 2020 purchased a machinery paying 50,000 euros. (1) Record and journalize the purchase transaction and (ii) method considering a residual useful life of 5 years. (help yourself creating a table representing the depreciation schedule of the asset) Depreciate the machinery by using the straight line Record and journalize the proper adjusting entries as at December 31, 2020.


Extracted text: During the year 2022 Alfa SpA sells the machinery for 27,000 euros. Record and journalize the transaction determining the eventual gain or loss the company achieved. Do recall that the depreciation is an adjusting entry to be made at the end of the reporting year.