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 $288,000 cash on January 2 on January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. 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 8-6A Part 2 2. Prepare journal entries to record depreciation of the machine at December 31. Data No 1 Answer is not complete General Journal Depreciation experise - Machinery Accumulated depreciation -- Machinery Debit Credit Dec 31 43,840 O 43,840 2 Dec 31 Depreciation expense-Machinery Accumulated depreciation Machinery Loss on exchange of assets 219,200 78.400 0 288,000 Return 3 3 of 3 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 $288,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine and an additional $1,600 to secure it in place. 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 8-6A Part 3 3. Prepare Journal entries to record the machine's disposat under each separate situation: () it is sold for $21.500 cash (of it is sold for $86,000 cash; and (it is destroyed in a fire and the insurance company pays $32,000 cash to settle the loss claim No Date Dec 31 Debit Credit 1 Answer is not complete. General Journal Cash Accumulated depreciation - Machinery Loss on sale of machinery Machinery 2 Dec 31 Cash Accumulated depreciation - Machinery Machinery Bolo 86,000 288.000