Required information [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $240,000 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 $28,800 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 depreciation of the machine at December 31. No Date General Journal 1 December 31 Depletion expense Accumulated depreciation-Machinery Debit Credit 36,800 36,800 2 December 31 Depletion expense × 36,800 Accumulated depreciation-Machinery 36,800
Required information [The following information applies to the questions displayed below.] Onslow Company purchased a used machine for $240,000 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 $28,800 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 depreciation of the machine at December 31. No Date General Journal 1 December 31 Depletion expense Accumulated depreciation-Machinery Debit Credit 36,800 36,800 2 December 31 Depletion expense × 36,800 Accumulated depreciation-Machinery 36,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
Onslow Company purchased a used machine for $240,000 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 $28,800 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 depreciation of the machine at December 31.
No
Date
General Journal
1
December 31
Depletion expense
Accumulated depreciation-Machinery
Debit
Credit
36,800
36,800
2
December 31
Depletion expense
×
36,800
Accumulated depreciation-Machinery
36,800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0f854e16-25ae-4e30-8e1a-a03a28cc52ec%2F1ae741dd-d985-44c8-badd-a0aa23b191d4%2F68r64le_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Onslow Company purchased a used machine for $240,000 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 $28,800 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 depreciation of the machine at December 31.
No
Date
General Journal
1
December 31
Depletion expense
Accumulated depreciation-Machinery
Debit
Credit
36,800
36,800
2
December 31
Depletion expense
×
36,800
Accumulated depreciation-Machinery
36,800
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