Required information [The following information applies to the questions displayed below.) Onslow Co. purchased a used machine for $144,000 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 $17,280 salvage value. Straight-line depreciation is used. On December 31, at the end of its fifth year in operations, it is disposed of. 3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash: (b) it is sold for $82,000 cash; and (dit is destroyed in a fire and the insurance company pays $31.000 cash to settle the loss claim. View transaction list Journal entry worksheet 1 2 3 Record the sale of the used machine for $20,500 cash. Note: Enter debits before credits Debit Credit Date Dec 31 General Journal Cash Accumulated depreciation-Machinery Loss on sale of machinery