Required information 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 $10,000 to wire electricity to the machine. Onslow paid an additional $2,000 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 Hed Problem 8-6A (Algo) Part 3 3. Prepare journal entries to record the machine's disposal under cach separate situation: (a) it is sold for $23,000 cash and (b) it is sold for $92,000 cash No Date December 31 Credit 1 General Joumal Cash Accumulated depreciation Machinery Loss on sale of machinery Machinery BOOO Dobit 23,000 18,600 42,500 3 84.100 2. December 31 92,000 Cash Acumulated depreciation Machinery Machinery Gain on sale of machinery 18,000 3 OOOO 110,000 110,000