Required Information (The following information applies to the questions displayed below.) 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 Jenuary 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. 3. Prepare journal entries to record the machine's disposal under each separate situation: (0) It is sold for $20,000 cosh and (b) it is sold for $80,000 cash, View transaction list Journal entry worksheet Record the sale of the used machine for $20,000 cash. Netei Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
Required Information (The following information applies to the questions displayed below.) 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 Jenuary 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. 3. Prepare journal entries to record the machine's disposal under each separate situation: (0) It is sold for $20,000 cosh and (b) it is sold for $80,000 cash, View transaction list Journal entry worksheet Record the sale of the used machine for $20,000 cash. Netei Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.6: Buying Intangible Assets And Calculating Amortization Expense
Problem 1OYO
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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![Required information
(The following information applies to the questions displayed below.]
Onslow Company purchased a used machine for $192.000 cash on Jonuary 2. On January 3, Onslow paid $8,000 to wire
electricity to the machine, Onslow pald an additional $1,600 on January 4 to secure the machine for operation. The
machine will be used for six years and have o $23,040 salvoge value. Straight-line depreclation is used. On December 31,
at the end of its fifth year in operations, It is disposed of.
3. Prepere journal entries to record the machine's disposal under each separate situation: (0) It is sold for $20,000 cosh and (b) it is
sold for $80,000 cash.
View transaction list
Journal entry worksheet
Record the sale of the used machine for $20,000 cash.
Note Enter debits bafore credits.
Date
General Journal
Debit
Credit
December 31
Record entry
Clear entry
View general jourmal](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c8a314c-cf34-4780-8f50-ca789d6ae046%2F8b325cac-bcc8-48db-8fb9-047ce9d38082%2Frk7jsui_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 $192.000 cash on Jonuary 2. On January 3, Onslow paid $8,000 to wire
electricity to the machine, Onslow pald an additional $1,600 on January 4 to secure the machine for operation. The
machine will be used for six years and have o $23,040 salvoge value. Straight-line depreclation is used. On December 31,
at the end of its fifth year in operations, It is disposed of.
3. Prepere journal entries to record the machine's disposal under each separate situation: (0) It is sold for $20,000 cosh and (b) it is
sold for $80,000 cash.
View transaction list
Journal entry worksheet
Record the sale of the used machine for $20,000 cash.
Note Enter debits bafore credits.
Date
General Journal
Debit
Credit
December 31
Record entry
Clear entry
View general jourmal
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