1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred.
2. Prepare journal entries to record depreciation of the machine at December 31.
3. Prepare journal entries to record the machines disposal under each separate situation: (a) it is sold for $21,000 cash and (b) it is sold for $84,000 cash.
Onslow Company purchased a used machine for $192,000 cash on January 2 . On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $23,040 salvage value. Straight-line depreciation is used. On December 31 , at the end of its fifth year in operations, it is disposed of. Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. Journal entry worksheet Record the purchase of a used machine for $192,000 cash. Note: Enter debits before credits. quired: Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. Journal entry worksheet Record the costs of $8,000 incurred on the used machine. Note: Enter debits before credits Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. Journal entry worksheet Record the cost of $1,600 for an operating platform. Note: Enter debits before creditg. 2. Prepare journal entries to record depreciation of the machine at December 31. Journal entry worksheet Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. 2. Prepare journal entries to record depreciation of the machine at December 31. Journal entry worksheet Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,000 cash and (b) it is sold or $84,000 cash. Journal entry worksheet Record the sale of the used machine for $21,000 cash. Note) Enter debits before credits. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,000 cash and (b) it is sold for $84,000 cash. Journal entry worksheet Record the sale of the used machine for $84,000 cash. Note: Enter debits before aredits
