Problem 8-6A (Algo) Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $192,000 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 $23,040 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. oblem 8-6A (Algo) Part 1 quired: Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs curred. Journal entry worksheet Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is p incurred. 1 Record the first year year-end adjusting entry for the depreciation expense of the used machine. 2 Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note : O= journal entry has been entered 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $21,500 cash and (b) it is sold for $86,000 cash. 1 Record the sale of the used machine for $21,500 cash. 2 Record the sale of the used machine for $86,000 cash