**Educational Website Transcription:**---### Required Information#### 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 33. 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.### Journal Entry Table**Table Detail:**- The table is incomplete and meant for recording journal entries associated with the disposal of the machinery.- Key information to be recorded includes the date (December 31), along with the debit and credit amounts for the transactions based on the assumptions given (sale or insurance settlement).--- **Journal Entries****1. Record the sale of the used machine for $21,000 cash.**| No | Date | General Journal | Debit | Credit ||----|--------|-----------------------------------------|--------|----------|| 1 | Dec 31 | Accumulated depreciation—Machinery | 21,000 | || | | Accumulated depreciation—Machinery | 219,200| || | | Loss on sale of machinery | | 57,000 || | | Machinery | | 297,200 |**2. Record the sale of the used machine for $84,000 cash.**| No | Date | General Journal | Debit | Credit ||----|--------|-----------------------------------------|--------|----------|| 2 | Dec 31 | Cash | 84,000 | || | | Accumulated depreciation—Machinery | 219,200| || | | Machinery | | 297,600 || | | Gain on sale of machinery | 560 | |**3. Record the insurance settlement received of $31,500 resulting from the total destruction of the machine in a fire.**| No | Date | General Journal | Debit | Credit ||----|--------|-----------------------------------------|--------|----------|| 3 | Dec 31 | Cash | 31,500 | || | | Accumulated depreciation—Machinery | 219,200| || | | Loss from fire | | 46,500 || | | Machinery | | 297,200 |

Answered: Image /qna-images/answer/a5af8012-ae59-44f0-b7d3-d6bdbdfb4239.jpg

Required information 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. oblem 10-6A Part 3 Prepare journal entries to record the machine's disposal under each of the following separate assumptions: $21,000 sh. 1. Record the sale of the used machine 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.

Required information 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. oblem 10-6A Part 3 Prepare journal entries to record the machine's disposal under each of the following separate assumptions: $21,000 sh. 1. Record the sale of the used machine 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

27 01:05:53 Mc Graw Hill Mohr Company purchases a machine at the beginning of the year at a cost of $28,000. The machine is depreciated using the double- declining-balance method. The machine's useful life is estimated to be 5 years with a $2,000 salvage value. The machine's book value at the end of year 2 is: Multiple Choice $15,600 $6,800. $11,200. < Prev 27 of 40 www www Noxt
None
Please do not give solution in image format thanku
Hansaben
None
answer pls
Exercise 10-17 (Algo) Disposal of assets LO P2 Diaz Company owns a machine that cost $127,000 and has accumulated depreciation of $93,500. Prepare the entry to record the disposal of the machine on January 1 in each separate situation. 1. The machine needed extensive repairs and was not worth repairing. Diaz disposed of the machine, receiving nothing in return.2. Diaz sold the machine for $16,000 cash.3. Diaz sold the machine for $33,500 cash.4. Diaz sold the machine for $41,000 cash.
Subject: acounting
Exercise 8-4A (Algo) Determining the cost of an asset LO 8-1 Southwest Milling Company purchased a front-end loader to move stacks of lumber. The loader had a list price of $120,090. The seller agreed to allow a 4.75 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Transportation cost amounted to $2,500. Southwest Milling had to hire a specialist to calibrate the loader. The specialist's fee was $1,100. The loader operator is paid an annual salary of $27,380. The cost of the company's theft insurance policy increased by $1,560 per year as a result of acquiring the loader. The loader had a four-year useful life and an expected salvage value of $5,100. Required: Determine the amount to be capitalized in an asset account for the purchase of the front-end loader. Note: Round your answers to the nearest whole dollar. Amounts to be deducted should be indicated with minus sign. Costs that are to be capitalized: List price Total costs
None
Exercise 10-13 (Algo) Revising depreciation LO C2 Apex Fitness Club uses straight-line depreciation for a machine costing $21,050, with an estimated four-year life and a $2,250 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $1,800 salvage value. 1. Compute the machine's book value at the end of its second year. 2. Compute the amount of depreciation for each of the final three years given the revised estimates. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the machine's book value at the end of its second year. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Book Value at the End of Year 2: Cost Accumulated depreciation 2 years Book value at point of revision $ 0
5