Train 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.

Prepare journal entries to record the machine's purchase and the costs to ready it for use. Cash is paid for all costs incurred.

Date	General Journal	Debit	Credit
Jan 02
Jan 03
Jan 03

Prepare journal entries to record depreciation of the machine at December 31. Record the 1st year year-end adjusting entry for the depreciation expense of the used machine. Record the year of disposal year end adjusting entry for the depreciation expense of the used machine.

Date	General Journal	Debit	Credit
Dec 31

Prepare journal entries to record the machines disposal under each separate situation: (a) it is sold for $21,000 cash; (b) it is sold for $84,000 cash; and (c) it is destroyed in a fire and the insurance company pays $31,500 cash to settle the loss claim.

Date	General Journal	Debit	Credit
Dec 31