Required information Problem 10-6A (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 $288,000 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 $34,560 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. Problem 10-6A (Algo) Part 1 Required: Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred. View transaction list View journal entry worksheet No Date General Journal 1 January 02 Accumulated depreciation-Building 2 January 03 Accumulated depreciation-Machinery 3 January 04 Accumulated depreciation-Machinery Debit Credit Journal entry worksheet < 1 2 Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal > Journal entry worksheet < 1 2 Record the sale of the used machine for $20,500 cash. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal