Prepare the journal enteies to record the machines purchase and the costs to ready it for use. Cash is paid for all costs incurred.

Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 The following information applles to the questions displayed below] Onslow Company purchased a used machine for $144,000 cash on January 2 . On January 3, Onslow pajd $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 fith year in operations, it is disposed of. roblem 8-6A (Algo) Part 1 equired: Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is poid for all costs incurred