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. Problem 8-6A (Algo) Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $23,500 cash and (b) it is sold for $94,000 cash. No Date 1 December 31 Cash Answer is not complete. General Journal Debit Credit 23,500 Accumulated depreciation-Machinery Loss on sale of machinery 2 December 31 Cash 94,000 Accumulated depreciation-Machinery Gain on sale of machinery