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 $144,000 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 $17,280 salvage value. Straight-line depreciation is used. On December 31 , at the end of its fifth year in operations, it is disposed of. 2. Prepare journal entries to record depreciation of the machine at December 31 . Answer is complete and correct. \begin{tabular}{|l|l|c|c|} \hline \multicolumn{1}{|c|}{ Date } & General Journal & Debit & Credit \\ \hline December 31 & Depreciation expense-Machinery & 22,320 \\ \hline & Accumulated depreciation-Machinery & 22,320 \\ \hline December 31 & Depreciation expense-Machinery & 22,320 \\ \hline & Accumulated depreciation-Machinery & 22,320 \\ \hline \end{tabular}