Help Save & Required informatiorn Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below Ch Onslow Co purchases a used machine for $192000 cash on January 2 and readies it for use the next day at a $10.000 cost. On January 3, it is installed on a required operating platform costing $2.000. and it is further readied for operations The company predicts the machine will be used for six years and have a $23040 salvage value. Depreciation is to be charged on a straight-line basis On December 31, at the end of ts fifth year in operations, it is disposed of Problem 10-6A Part 1 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 view transaction list Journal entry worksheet Record the purchase of a used machine for $192,000 cash Note: Enter debits before credits Jan 02 View general journal Clear entry Record entry Problem 10-6A Part 2 2 Prepare journal entries to record depreciation of the machine at December 31 View transaction list Journal entry worksheet Record the first year year-end adjusting entry for the depreciation expense of the used machine Note: Enter debits before credits. Date Dec 31 Debit Credit General Journal 6 7 Problem 10-6A Part 3 3. Prepare journal entries to record the machine's disposal und er each of the following separate assumptions: 1 Record the sale of the used machine for $20.000 cash 2 Record the sale of the used machine for $80.000 cash. d the insurance settlement received of $30.500 resulting from the total destruction of the machine in a fire. View transaction list Journal entry worksheet Record the sale of the used machine for $20,000 cash Note: Enter debits before credits. Debit Credit Dec 31 iew general journal Clear entry Record entry