Onslow Co. purchases a used machine for $240,000 cash on January 2 and readies it for use the next day at a $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, 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.

Required:

Journal entry worksheet

Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred.

1) Record the purchase of a used machine for $240,000 cash.

2) Record the costs of $6,000 incurred on the used machine.

3) Record the cost of $1,200 for an operating platform

Prepare journal entries to record depreciation of the machine at December 31.

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

5) Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine

Prepare journal entries to record the machine's disposal under each of the following separate assumptions:

6) Record the sale of the used machine for $23,500 cash.

7) Record the sale of the used machine for $94,000 cash.

8) Record the insurance settlement received of $34,000 resulting from the total destruction of the machine in a fire.

General Journal Options:

Accumulated amortization /Accumulated Depletion/ Accumulated depreciation- Machinery/ Amortization expense/ Building/ Cash/ Depletion expense/ Depreciation expense- Machinery/ Gain on sale of machinery/ Goodwill/ Impairment loss/ Land/ Land improvements/ leasehold improvements/ Loss from fire/ loss on exchange of assets/ Loss on sale of machinery/ Mineral deposit/ Ore mine/ Prepaid rent/ Rent Expense/ Repairs expense/ Vehicles

Date	General Journal	Debit	Credit
Jan 03
Jan 03
Jan 03
Dec 31
Dec 31