Required information

Problem $8-6$A $($Algo$)$ Disposal of plant assets LO C$1,$ P$1,$ P$2$

$[$The following information applies to the questions displayed below.$]$

Onslow Company purchased a used machine for $$192,000$ cash on January $2.$ On January $3,$ Onslow paid $$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 $$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 $8-6$A $($Algo$)$ Part $3$

Prepare journal entries to record the machine's disposal under each separate situation: $($a$)$ it is sold for $$20,500$ cash and $(b)$ it is

sold for $$82,000$ cash.

Journal entry worksheet

Record the sale of the used machine for $$20,500$ cash.

Note: Enter debits before credits.