Required information Problem 8-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1600 to secure it in place. 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 8-6A Part 3 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $22,500 cash: (b) it is sold for $90,000 cash, and (it is destroyed in a fire and the insurance company pays $33,000 cash to settle the loss claim View transaction list Journal entry worksheet Record the sale of the used machine for $22,500 cash. Note: Enter debits before credits Date General Journal Credit Debit 22,500 Dec 31 Cash Accumulated depreciation - Machinery Loss on sale of machinery Machinery Journal entry worksheet