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 $240,000 cash on January 2 On January 3, Onslow paid $10,000 to wire Onslew co porchased a used machine for the machine and an additional $2,000 to secure it in place. 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 Problem 8-6A Part 1 Required: 1. Prepare journal entries to record the mochine's purchase and the costs to ready it for use. Cash is paid for all costs incurred Journal entry worksheet Record the purchase of a used machine for $240,000 cash. Note: Enter debits before credits. Journal entry worksheet Record the costs of $10,000 incurred on the used machine. Note: Enter debits before credits. Journal entry worksheet 1 Record the cost of $2,000 for an operating platform. Note: Enter debits before credits. 2. Prepare journal entries to record depreciation of the machine at December 31 . Journal entry worksheet Record the first year year-end adjusting entry for the depreciation expense of the used machine. Mate finter ilahefe hamevere romatite Journal entry worksheet Record the first year year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. Journal entry worksheet Record the year of disposal year-end adjusting entry for the depreciation expense of the used machine. Note: Enter debits before credits. 3. Prepare journal entries to record the machine's disposal under each separate situation (d) it is sold for $23,500 cash: (D) it is sold for $94,000 cash; and (d) it is destroyed in a fire and the insurance company pays $34,000 cash to settle the loss claim. Journal entry worksheet Record the sale of the used machine for $23,500 cash. Notel Enter debits before credits 3. Prepare journal entries to record the machine's disposal under each separate situation (a) it is sold for $23,500 cash: (b) it is sold for $94,000 cash, and (d) it is destroyed in a fire and the insurance company pays $34,000 cash to settle the loss claim. Journal entry worksheet 3 Record the sale of the used machine for $94,000 cash. Note: Enter debits before credits. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $23,500 cash. (b) it is sold for $94,000 cash, and (d) it is destroyed in a fire and the insurance company pays $34,000 cash to settle the loss claim. Journal entry worksheet
