Onslow Company purchased a used machine for $288,000 cash on January 2. On January 3, Onslow paid $6,000 to wire electricity to the machine. Onslow paid an additional $1,200 on January 4 to secure the machine for operation. The machine will be used for six years and have a $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of.

Problem 10-6A (Algo) Part 1

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.

Journal entry worksheet Record the purchase of a used machine for $288,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the costs of $6,000 incurred on the used machine. Note: Enter debits before credits. Journal entry worksheet 1 Record the cost of $1,200 for an operating platform. Note: Enter debits before credits