Onslow Company purchased a used machine for $144,000 cash on January 2. On January 3, Onslow paid $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 on January 4 to secure the machine for operation. The machine will be used for six years and have a $17,280 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.

Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred.

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

b. Record the costs of $10,000 incurred on the used machine.

c. Record the cost of $2,000 for an operating platform.

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

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

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