**Problem 10-6A Disposal of Plant Assets LO C1, P1, P2***The following information applies to the questions displayed below.*Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at an $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of.**Problem 10-6A Part 3**Prepare journal entries to record the machine's disposal under each of the following separate assumptions:1. Record the sale of the used machine for $21,000 cash.2. Record the sale of the used machine for $84,000 cash.3. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.*View transaction list***Journal Entry Worksheet**Record the sale of the used machine for $21,000 cash.*Note: Enter debits before credits.*| Date | General Journal | Debit | Credit ||----------|---------------------------------------------|-----------|-----------|| Dec 31 | | | 21,000 || | Accumulated Depreciation—Machinery | 219,200 | || | Loss on Sale of Machinery | 67,000 | || | Machinery | | 297,600 |Here, the table provides the journal entry for recording the sale of the used machine for $21,000 cash. The account "Accumulated Depreciation—Machinery" is debited, reflecting the accumulated depreciation to the date of disposal. Meanwhile, the "Loss on Sale of Machinery" is also debited to account for the loss incurred when the machine was sold below its book value. The "Machinery" account is credited to remove it from the books at its original cost.

Journal is the book of original entry in which financial transactions of business are recorded…

Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of. blem 10-6A Part 3 repare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $21,000 cash. E. Record the sale of the used machine for $84,000 cash. E. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.

Problem 10-6A Disposal of plant assets LO C1, P1, P2 [The following information applies to the questions displayed below.] Onslow Co. purchases a used machine for $288,000 cash on January 2 and readies it for use the next day at a $8,000 cost. On January 3, it is installed on a required operating platform costing $1,600, and it is further readied for operations. The company predicts the machine will be used for six years and have a $34,560 salvage value. Depreciation is to be charged on a straight-line basis. On December 31, at the end of its fifth year in operations, it is disposed of. blem 10-6A Part 3 repare journal entries to record the machine's disposal under each of the following separate assumptions: 1. Record the sale of the used machine for $21,000 cash. E. Record the sale of the used machine for $84,000 cash. E. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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