Onslow Co. purchases a used machine for $288,000 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 $34,560 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.

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

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

(a) Its first year in operations.

Date

	General Journal	Debit	Credit
Dec 31	Depreciation expenseMachinery
	Accumulated depreciationMachinery

(b) The year of its disposal.

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

Date	General Journal	Debit	Credit
Dec 31	Depreciation expenseMachinery
	Accumulated depreciationMachinery