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Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On
Onslow Co. purchases a used machine for $240,000 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 $28,800 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 cost of $1,600 for an operating platform. Note: Enter debits before credits. Date General Journal Debit Credit Jan 03 Record the costs of $8,000 incurred on the used machine. Note: Enter debits before credits. Date General Journal Debit Credit Jan 03 Record the purchase of a used machine for $240,000 cash. Note: Enter debits before credits. Date General Journal Credit Debit 240,000 Jan 02 Machinery 240,000
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