13 ! Required information Part 3 of 3 Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] 3 points 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. eBook Problem 10-6A Part 3 Print 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $23,000 cash; (b) it is sold for $92,000 cash; and (c) it is destroyed in a fire and the insurance company pays $33,500 cash to settle the loss claim. References View transaction list View journal entry worksheet No Date General Journal Credit 1 Dec 31 Debit 23,000 7,200 Cash Loss on sale of machinery Accumulated depreciationMachinery Machinery 199 200 2 Dec 31 92,000 Cash Accumulated depreciation-Machinery Machinery 199,200 Dec 31 Cash 33,500