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XYZ's computerized accounting system automatically updates the non-current asset register when additions to property, plant...

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XYZ's computerized accounting system automatically updates the non-current asset register when additions to property, plant and equipment are made A machine costing $120,000, with a useful life of five years and an estimated residual value of $12,000 is acquired at the year end.

Which of the following statements is correct in relation to the recording of this asset in the non-current asset register?

A.

The journal entry to record the cost is Dr Asset $120,000 and Cr Bank $120,000 The five year useful life is recorded

B.

There is no journal entry but the cost of $120,000, the five year useful life and estimated residual value of $12 000 are recorded

C.

There is no journal entry but the cost of $120,000 and the five year useful life are recorded

D.

The journal entry to record the cost is Dr Asset $120,000 and Cr Bank $120,000 The five year useful life and estimated residual value of $12,000 are recorded

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