Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need to know how to get all of the answers with the red x Required information [The following information applies to the questions displayed

image text in transcribedimage text in transcribedI need to know how to get all of the answers with the red x

Required information [The following information applies to the questions displayed below.) Onslow Co. purchases a used machine for $144,000 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 $17,280 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. 3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $21,500 cash. 2. Record the sale of the used machine for $86,000 cash. 3. Record the insurance settlement received of $32,000 resulting from the total destruction of the machine in a fire. X Answer is complete but not entirely correct. No Credit Date Dec 31 General Journal Cash Accumulated depreciation-Machinery Loss on sale of machinery Machinery Debit 21,500 113,600 18,500 153,600 Dec. 31 86,000 13,600 Cash Accumulated depreciation-Machinery Machinery Gain on sale of machinery 153,600 X 46,000 Dec 31 Cash Accumulated depreciation Machinery Loss from fire Machinery 32,000 113,600 X 8,000 $ 153,600 X

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Audit In Higher Education

Authors: Alison Holmes, Sally Brown

1st Edition

0749433000, 978-0749433000

More Books

Students also viewed these Accounting questions

Question

define what is meant by the term human resource management

Answered: 1 week ago