[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 January 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.
[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 January 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I have no idea what I did wrong
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Required information
[The following information applies to the questions displayed below.]
3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash and (b) it is
sold for $82,000 cash.
¡
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 January 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.
View transaction list
i
No
1
2
View journal entry worksheet
Date
December 31
December 31
General Journal
Cash
Accumulated depreciation-Machinery
Loss on sale of machinery
Machinery
Cash
Accumulated depreciation-Machinery
Gain on sale of machinery
Machinery
Debit
20,500
148,800
32,035
82,000
148,800
Credit
200,000
29,465
200.000
Ⓒ](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb024b48-b7d1-47d7-b01e-0e29dd2999d0%2F7afea9b6-a906-4dd2-a8ba-7c1f70d12ce6%2Fvsjwesr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:nces
Required information
[The following information applies to the questions displayed below.]
3. Prepare journal entries to record the machine's disposal under each separate situation: (a) it is sold for $20,500 cash and (b) it is
sold for $82,000 cash.
¡
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 January 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.
View transaction list
i
No
1
2
View journal entry worksheet
Date
December 31
December 31
General Journal
Cash
Accumulated depreciation-Machinery
Loss on sale of machinery
Machinery
Cash
Accumulated depreciation-Machinery
Gain on sale of machinery
Machinery
Debit
20,500
148,800
32,035
82,000
148,800
Credit
200,000
29,465
200.000
Ⓒ
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