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stlons displayed below.] Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 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 E. 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 $24,000 cash. 2. Record the sale of the used machine for $96,000 cash. 3. Record the insurance settlement received of $34,500 resulting from the total destruction of the machine in a fire.

stlons displayed below.] Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at a $6,000 cost. On January 3, it is installed on a required operating platform costing $1,200, and it is further readied for operations. The company predicts the machine will be used for six years and have a $23,040 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 E. 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 $24,000 cash. 2. Record the sale of the used machine for $96,000 cash. 3. Record the insurance settlement received of $34,500 resulting from the total destruction of the machine in a fire.

FINANCIAL ACCOUNTING
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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**Problem 10-6A: Disposal of Plant Assets** **Overview:** Onslow Co. purchases a used machine for $192,000 in cash on January 2. It is made ready for use the next day with a $6,000 cost. On January 3, the machine is installed on a necessary operating platform costing $1,200, and further prepared for operations. The machine is expected to be used for six years and have a $23,040 salvage value. Depreciation is calculated using the straight-line method. On December 31, the machine is disposed of at the end of its fifth year of operations. **Problem 10-6A Part 3:** 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 $24,000 cash. 2. Record the sale of the used machine for $96,000 cash. 3. Record the insurance settlement of $34,500 received as a result of the total destruction of the machine in a fire. **Note:** For practical insights, consider access to the "View transaction list" feature for detailed financial entries related to these scenarios.
Transcribed Image Text:**Problem 10-6A: Disposal of Plant Assets** **Overview:** Onslow Co. purchases a used machine for $192,000 in cash on January 2. It is made ready for use the next day with a $6,000 cost. On January 3, the machine is installed on a necessary operating platform costing $1,200, and further prepared for operations. The machine is expected to be used for six years and have a $23,040 salvage value. Depreciation is calculated using the straight-line method. On December 31, the machine is disposed of at the end of its fifth year of operations. **Problem 10-6A Part 3:** 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 $24,000 cash. 2. Record the sale of the used machine for $96,000 cash. 3. Record the insurance settlement of $34,500 received as a result of the total destruction of the machine in a fire. **Note:** For practical insights, consider access to the "View transaction list" feature for detailed financial entries related to these scenarios.
**Journal Entry Worksheet** *Screen Instructions:* "Record the sale of the used machine for $96,000 cash." *Note: Enter debits before credits.* **Table: General Journal** | Date | General Journal | Debit | Credit | |----------|-----------------|-------|--------| | Dec. 31 | | | | | | | | | | | | | | | | | | | | | | | | *Buttons for Actions:* - Record entry - Clear entry - View general journal This worksheet is designed for entering and managing journal entries in an accounting context. The table format includes rows for date, general journal entry details, debits, and credits. There are actionable buttons to record, clear, and review journal entries as needed.
Transcribed Image Text:**Journal Entry Worksheet** *Screen Instructions:* "Record the sale of the used machine for $96,000 cash." *Note: Enter debits before credits.* **Table: General Journal** | Date | General Journal | Debit | Credit | |----------|-----------------|-------|--------| | Dec. 31 | | | | | | | | | | | | | | | | | | | | | | | | *Buttons for Actions:* - Record entry - Clear entry - View general journal This worksheet is designed for entering and managing journal entries in an accounting context. The table format includes rows for date, general journal entry details, debits, and credits. There are actionable buttons to record, clear, and review journal entries as needed.
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