Questions 6 8 (of 8) [The following information applies to the questions displayed below) Saturn Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at an $6,000 cost. On January 3, it is installed on a required operating platform costing $1.200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 residual value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of 6. value: 10.00 points Required: 1. Prepare journal entries to record the machine's purchase and the costs to ready and install it. Cash is paid for all costs incurred. (Omit the "$" sign in your response.) Date Debit Credit Machinery purchase cost Jan. 2 Machinery 192000 Cash 192000 Preparation cost Jan. 3 Depreciation expense-machinery Ask your instructor a question 7. value 10.00 points 2. Prepare journal entries to record depreciation of the machine at Dpcember 31. (Omit the "" sign in your response.) (a) Its first year in operations. |Date General Journal Debit Credit Dec. 31 Depreciation expense-machinery 293600 Accumulated depreciation-machinery 293600 (b) The year of its disposal. Date Dec. 31 General Journal Debit (Click to select) (Click to select) References Worksheet Learning Objective: 10-C1 Explain the cost principle for computing the cost of property, plant and equipment. Learning Objective: 10-P2 A an asset 8. value: 10.00 points 3. Prepare journal entries to record the machine's disposal under each of the following separate assumptions (Omit the "$" sign in your response): (a) It is sold for $22,500 cash. General Journal DebitCredit Dec. 31 (Click to select) (Click to select) (Click to select) (Click to select) (b) It is sold for $90,000 cash. Date General Journal DebitCredit Dec. 31 (Click to select) (Click to select) Click to select) (Click to select) (c) It is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim. General Journal Debit Dec. 31(Click to select) Click to select) (Click to select) (Click to select)