Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash and (b) it is sold for $82,000 cash.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question
Onslow Company purchased a used machine for $192,000 cash on January 2. On January 3, Onslow paid $8,000 to wire electricity to the machine. Onslow paid an additional $1,600 on January 4 to secure the machine for operation. 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. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash and (b) it is sold for $82,000 cash.
Journal entry worksheet
<
1
Record the sale of the used machine for $82,000 cash.
2
Note: Enter debits before credits.
Date
December 31
Record entry
General Journal
Cash
Accumulated depreciation-Machinery
Gain on sale of machinery
Machinery
Clear entry
Debit
Credit
View general jour
Transcribed Image Text:Journal entry worksheet < 1 Record the sale of the used machine for $82,000 cash. 2 Note: Enter debits before credits. Date December 31 Record entry General Journal Cash Accumulated depreciation-Machinery Gain on sale of machinery Machinery Clear entry Debit Credit View general jour
Record the sale of the used machine for $20,500 cash.
Note: Enter debits before credits.
Date
December 31
Record entry
Cash
General Journal
Accumulated depreciation-Machinery
Loss on sale of machinery
Machinery
Clear entry
Debit
20,500
Credit
View general jo
Transcribed Image Text:Record the sale of the used machine for $20,500 cash. Note: Enter debits before credits. Date December 31 Record entry Cash General Journal Accumulated depreciation-Machinery Loss on sale of machinery Machinery Clear entry Debit 20,500 Credit View general jo
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Depreciation Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education