6)

Required information

[The following information applies to the questions displayed below.]

Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 salvage value. Depreciation is to be charged on a straight-line basis. 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 and install it. Cash is paid for all costs incurred.

a) Record the purchase of a used machine for $192,000 cash.

B) Record the costs of $6,000 incurred on the used machine

C) Record the cost of $1,200 for an operating platform.

A) Record the first year year-end adjusting entry for the depreciation expense of the used machine.

B) Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine.

A) Record the sale of the used machine for $23,000 cash.

B) Record the sale of the used machine for $92,000 cash.

C) Record the insurance settlement received of $33,500 resulting from the total destruction of the machine in a fire.