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 $22,500 cash; (b) it is sold for $90,000 cash; and (c) it is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim.

General Journal:

• Accumulated amortization
• Accumulated depletion
• Accumulated depreciationMachinery
• Amortization expense
• Building
• Cash
• Depletion expense
• Depreciation expenseMachinery
• Gain on sale of machinery
• Goodwill
• Impairment loss
• Land
• Land improvements
• Leasehold improvements
• Loss from fire
• Loss on exchange of assets
• Loss on sale of machinery
• Machinery
• Mineral deposit
• Ore mine
• Prepaid rent
• Rent expense
• Repairs expense
• Vehicles

Required information [The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine and an additional $1,200 to secure it in place. 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. View transaction list Journal entry worksheet Record the costs of $6,000 incurred on the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Jan 03 Record entry Clear entry View general journal ! Required information (The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine and an additional $1,200 to secure it in place. 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. View transaction list Journal entry worksheet Record the sale of the used machine for $90,000 cash. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Required information [The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine and an additional $1,200 to secure it in place. 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. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $22,500 cash: (b) it is sold for $90,000 cash; and (it is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim. View transaction list Journal entry worksheet