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 $240,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. The machine will be used for six years and have a $28,800 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 2 2. Prepare journal entries to record depreciation of the machine at December 31. No Date December 31 Debit Credit 1 General Journal Depletion expense Accumulated depreciation - Machinery 36,800 36,800 X 2 December 31 Accumulated depreciation Machinery Loss on sale of machinery Machinery Radno a teda a formalno Dot edited 219,200 $ 30,400 249.600