Onslow Co. purchases a used machine for $144,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, 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.

Record the purchase of a used machine for $144,000 cash.

Date	General Journal	Debit	Credit
Jan 02

Record the costs of $8,000 incurred on the used machine.

Date	General Journal	Debit	Credit
Jan 03

Record the cost of $1,600 for an operating platform.

Date	General Journal	Debit	Credit
Jan 03

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

Date	General Journal	Debit	Credit
Dec 31

Record the fifth year year-end adjusting entry for the depreciation expense of the used machine.

Date	General Journal	Debit	Credit
Dec 31