Onslow Co. purchases a used machine for $192,000 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 $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.

Prepare the journal entries to record depreciation of the machine at the Dec 31

1. its first year in operation (Record the year end adjusting entry for the depreciation expense of the used machine)

2. The year of its disposal (Record the year end adjusting entry for the depreciation expense of the used machine)

My answer was incorrect which was

cash-86,000 (debit)

accumulated Dep-148,800 (debit)

machinery- 201,600 (credit)

3. Prepare journal entries to record the machines disposal under each of the following separate assumptions

A) it is sold for $21,000 cash

record the sale of the used machine for $21,000 cash

B) it i sold for $84,000

record the sale of the used machine for $84,000

C) It is destroyed in a fire and the insurance company pays $31,500 cash to settle the loss claim

record the insurance settlement received of $31,500 resulting from the total destruction of th machine